Accenture shares rose 22% on 1 October after its fiscal 2027 revenue growth forecast of 3% to 6% put the midpoint above analysts’ 3.9% estimate, Reuters reported.
Key points
- Fourth-quarter revenue reached $18.68 billion, against estimates of $18.03 billion.
- Bookings rose 4% to $22.17 billion, and consulting revenue grew 7% to $9.28 billion.
- Accenture said pricing was lower in many areas during the quarter.
- Chief executive Julie Sweet expects approximately $5 billion in acquisitions in fiscal 2027.
Accenture’s $18.68 billion quarter
Accenture’s fourth-quarter sales exceeded the $18.03 billion analyst estimate. Consulting revenue rose 7% to $9.28 billion, contributing to total revenue of $18.68 billion. Bookings, which measure work won rather than sales already recorded, increased 4% to $22.17 billion.
The annual forecast covered fiscal 2027. Its 3% to 6% growth range exceeded the 3.9% average analyst projection at the midpoint, according to LSEG data cited by Reuters. The shares were on course for their best day ever during trading on 1 October, Reuters reported.
Before the results, Accenture had reported third-quarter revenue of $18.72 billion, up 6% from a year earlier, while bookings fell 2% to $19.32 billion, TradingKey reported on 27 September. Consulting revenue had grown 1% in local currency in that quarter.
Free cash flow increased to $3.6 billion from $3.5 billion, while earnings per share rose 9% to $3.80. The earlier fall in bookings had put particular attention on the next quarter’s sales pipeline.
Cognizant and Indian rivals gain
Shares in other IT services companies also gained on 1 October. Cognizant rose about 8% and IBM about 3%, while US-listed shares of Wipro and Infosys advanced between 6% and 7%. Accenture’s shares had been down about a third for the year before that trading session.
Earlier in US premarket trading, Infosys depositary receipts had risen about 8% and Wipro’s 3%, The Economic Times reported. Indian IT shares had advanced during domestic trading too: Mphasis gained as much as 5%, while Coforge and Infosys rose about 5% and 3%, respectively.
Investors had worried that AI tools could reduce demand for traditional software services work. Software shares had largely recovered from a sell-off earlier in the year following the release of new Anthropic tools, but IT services stocks had lagged, Reuters reported.
Accenture said its prices were lower in many areas during the fourth quarter. Clients have been seeking a share of savings from AI, adding pressure to pricing even as companies turn to consultants for help with automation and adoption.
Sweet targets $5 billion in acquisitions
Chief executive Julie Sweet told a post-earnings call that Accenture expected to deploy approximately $5 billion on acquisitions in fiscal 2027, based on opportunities it saw to accelerate growth. In June, the company announced three cybersecurity deals worth a combined $4.18 billion, including a majority investment in Dragos.
Accenture’s AI partnerships extend beyond work for its consulting clients. In September, it agreed with Anthropic to evaluate frontier models independently. Each company committed at least $1 billion over five years to expand AI safety and testing capabilities. AI Affairs previously reported the two companies’ combined $2 billion commitment.
Accenture Edge and AWS announced a separate arrangement on 22 September to offer six cloud and AI services through AWS Marketplace to mid-sized companies, TradingKey reported. On 23 September, Accenture announced an investment in Within alongside a business-process automation partnership.
