Accenture Q1 Results: IT major beats quarterly revenue estimates on strong genAI service demand

IT major Accenture surpassed the Wall Street revenue estimates on Thursday, December 19, as the company announced its first-quarter results, reported the news agency Reuters. The company is witnessing rising demand for its services via clients adopting AI-powered tools.

Revenue for the first quarter was at $17.7 billion, beating the analyst's estimates of $17.12 billion, according to the news agency. 

Accenture Plc shares are trading 6.73 per cent higher at $371 as of 9:34 a.m. (EST), compared to its previous close of $347.61 per share. The company announced the results ahead of the market hours. Shares were trading 5 per cent higher at premarket trading.

Accenture is estimated to gain from businesses heavily investing to increase the scale of their AI projects and digitize their core operations to boost efficiency and reduce costs, according to the news agency's report.

The company's bookings increased to $18.7 billion in the first quarter compared to $18.4 billion in the same period a year earlier. 

According to the analysts cited by the news agency, the tech budgets for the fiscal year 2025 will likely improve, which predicts a better scenario for IT service providers like Accenture and EPAM.

Accenture's GenAI business recorded new bookings of $1.2 billion, while the consulting and outsourcing segments reported $9.2 billion and $9.5 billion, in the quarter results. 

The IT firm raised its annual revenue forecast to grow between 4 to 7 per cent, compared to the analysts' expectation of a 5.63 per cent revenue growth, according to the agency report. The company earlier anticipated a growth of 3 to 6 per cent. 

“We delivered broad-based revenue growth across both consulting and managed services, and across each market and industry group, gaining market share,” said Chairperson and Chief Executive Officer Julie Spellman Sweet, reported the news portal

The revenues for the second quarter are expected to be around $16.2 billion to $16.8 billion, as per the estimates. The company's shares jumped on the news of the revenue outlook on Thursday's market.