IT giant Accenture reported first-quarter results on Thursday, December 19, with revenue exceeding Wall Street expectations, the news agency reported. Reuters. The company has seen growing demand for its services from clients adopting AI-powered tools.
First-quarter revenue was $17.7 billion, beating analysts’ expectations of $17.12 billion, the news agency reported.
Accenture shares were up 6.73% at $371 as of 9:34 a.m. ET, after closing at $347.61 per share. The company released its results before the market opened. Shares were up 5% in pre-market trading.
According to the news agency, Accenture is expected to benefit from corporate investment in expanding the scale of artificial intelligence projects and digital core operations to improve efficiency and reduce costs.
The company’s first-quarter bookings rose to $18.7 billion, compared with $18.4 billion in the same period last year.
The news agency quoted analysts as saying that technology budgets are likely to improve in fiscal 2025, which bodes better for IT service providers such as Accenture and EPAM.
Accenture’s GenAI business recorded $1.2 billion in new orders during the quarter, while its consulting and outsourcing businesses reported $9.2 billion and $9.5 billion respectively.
The agency reported that the IT company raised its annual revenue forecast to 4% to 7%, while analysts’ revenue growth expectations were 5.63%. The company had forecast growth of 3% to 6%.
According to the news portal, Chairman and CEO Julie Spellman Sweet said: “We achieve a broad range of revenues across consulting and managed services and across every market and industry group. grew and gained market share.
Revenue for the second quarter is expected to be approximately $16.2 billion to $16.8 billion, according to estimates. The company’s shares rose after news of its revenue outlook hit the market Thursday.