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Accenture posted $17.7 billion in first-quarter revenue, surpassing estimates, with $1.2 billion generated by its booming generative AI services. The results highlight strong demand for AI adoption across industries.
Generative AI Propels Accenture’s First-Quarter Revenue
An increase in demand for Accenture's services to assist clients in adopting AI-powered solutions contributed to the company's first-quarter revenue beating Wall Street projections, which it announced on Thursday, Reuters reports.
During the premarket trading session, the company's shares increased by 5%.
Businesses are pouring resources into expanding their artificial intelligence initiatives and digitizing their essential processes to improve productivity and reduce expenses. This bodes well for organizations like Accenture.
Accenture’s New Bookings Reach $18.7 Billion
The amount of new bookings made by the corporation increased to $18.7 billion for the first quarter, which is an increase from $18.4 billion for the same period last year.
Analysts had predicted that technology funding for FY 2025 would rise, which is good news for IT service providers like EPAM and Accenture, even before the findings were announced.
Generative AI Division Leads Revenue Surge
New business for Accenture's GenerativeAI division came in at $1.2 billion, while the consulting and outsourcing divisions brought in $9.2 and $9.5 billion, respectively.
According to data provided by LSEG, its first-quarter sales was $17.7 billion, which was more than the $17.12 billion predicted by analysts.
Annual Growth Forecast Revised Upward
Although analysts were expecting a growth of 5.63 percent in yearly revenue, the corporation is projecting a growth of 4 to 7 percent. Earlier projections indicated a growth of 3-6%, Investing.com explains.
The revenue that Accenture forecasts for the second quarter is between $16.2 billion and $16.8 billion, with the midpoint of this range being lower than the average estimate of $16.63 billion that analysts have provided.
