Shares of Accenture PLC surged to a six-month high after the company reported strong quarterly earnings and announced $1 billion in generative AI bookings in the fourth quarter.
The management consulting giant, which provides services to help corporate clients adopt generative AI, has positioned itself as a key player in the AI boom, distinct from the focus on hardware makers like chip manufacturers.
Accenture’s Chief Executive Officer, Julie Sweet, emphasized the company’s leadership in generative AI, describing the technology as transformative and central to the company’s future growth.
“We believe the introduction of generative AI marks a new era, much like digital technology did over the past decade,” Sweet said.
She highlighted AI’s potential to solve industry-specific challenges.
For fiscal 2024, Accenture reported a total of $3 billion in new generative AI bookings, with nearly $900 million in AI-related revenue—triple the amount from the previous year. The company now employs 57,000 AI professionals and plans to expand to 80,000 by 2026 to meet rising demand.
Accenture’s overall bookings in the fourth quarter reached $20.1 billion, up 21%, contributing to a solid 2.6% revenue increase to $16.41 billion, exceeding analysts’ expectations. The firm also reported a rise in adjusted earnings per share (EPS) to $2.79, slightly ahead of forecasts.
The company raised its quarterly dividend by 15% and expanded its stock buyback program by $4 billion, further boosting investor confidence. Accenture shares closed 5.6% higher, marking a 16.7% rise over the past three months, outperforming the broader S&P 500 index.
Looking ahead, Accenture projects revenue growth of 3% to 6% for fiscal 2025 and anticipates EPS to range between $12.55 and $12.91, signaling continued confidence in the company’s AI-driven strategy.
Market Watch, Business Wire, and Investopedia contributed to this report.
