Accenture on Thursday, December 19, released a report on its earnings for the first quarter of fiscal 2025, which exceeded Wall Street’s preliminary expectations regarding this company’s revenue and profit for the mentioned period.
Against the background of the mentioned results, the value of shares of the specified firm, which provides services to help customers adopt digital tools powered by artificial intelligence, increased by 6.5% in early trading.
Currently, many companies are paying significant attention to scaling their projects related to machine intelligence and digitizing their core operations. Also, many firms are interested in providing data security to increase business growth and cut costs.
Accenture is a beneficiary of the mentioned tendencies. The company uses generative artificial intelligence in various industries. In this case, the firm helps clients optimize many operations. The list of services provided by the company includes, among others, predictive maintenance in manufacturing and automating workflow in advertising operations. The relevant information was stated by Accenture in a post-earnings call.
In the company’s generative artificial intelligence business, new bookings worth $1.2 billion and about $500 million in revenue were recorded in the first quarter of fiscal 2025.
Accenture’s new bookings, the main indicator of future revenue, in the mentioned period, rose to $18.7 billion from $18.4 billion a year earlier.
The company also announced that it has increased the number of data and artificial intelligence workforce to 69,000. Besides, the firm plans to raise this figure to 80,000 by 2026. The corresponding intentions are evidence of the growing demand for the company’s services.
Accenture’s revenue for the first quarter of fiscal 2025 was fixed at $17.7 billion. It is worth noting that Wall Street analysts expected this figure to be $17.12 billion. The mentioned result is related to the growth of the company’s business in regions such as the Middle East, Europe, Africa, and North and South America. Also in this case, the upward dynamic of the firm’s activities in the public service and healthcare sectors became a factor of beneficial impact.
Moreover, the company raised its annual revenue growth forecast to a range of 4% to 7%. The previous estimate provided for a range from 3% to 6%. At the same time, a kind of consensus expectation of analysts was associated with an indicator of 5.63%.
Accenture predicts that its revenue in the second fiscal quarter will range from $16.2 billion to $16.8 billion. The consensus projection of analysts envisaged that the corresponding figure would be $16.63 billion.
The company’s GAAP operating income for the first quarter of fiscal 2025 was fixed at $2.95 billion. This indicator showed an increase of 15% year-on-year.
The company’s consulting revenues for the first quarter of fiscal 2025 were fixed at $9.05 billion. This indicator increased by 7% year-on-year.
Managed Services revenues of Accenture for the mentioned period amounted to $8.64 billion. This indicator showed an increase of 11% year-on-year.
The company continues to return cash to shareholders through cash dividends and share repurchases. On November 15, a quarterly cash dividend of $1.48 per share was paid to shareholders of record at the close of business on October 10. These cash dividend payments totaled $926 million.
As we have reported earlier, Nvidia and Accenture to Boost Corporate AI Adoption.
