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Accenture forecasts 2024 revenue growth above estimates on AI demand
Global Banking & Finance Review®
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(Reuters) -IT services provider Accenture projected annual revenue growth largely above estimates on Thursday, as growing adoption of artificial intelligence offsets sluggish growth in enterprise spending, sending its shares up 3% in premarket trading.
(Reuters) -IT services provider Accenture projected annual revenue growth largely above estimates on Thursday, as growing adoption of artificial intelligence offsets sluggish growth in enterprise spending, sending its shares up 3% in premarket trading.
Generative AI technologies used to automate certain operations are helping companies boost productivity and save costs.
Accenture has also been a go-to consultant and outsourcing service provider for businesses migrating their operations to the cloud, partially shielding the company from inflation-triggered IT budget cuts.
The company expects annual revenue to grow between 1.5% and 2.5%, compared with analysts’ expectations of 1.6%, according to LSEG data. It had earlier expected growth between 1% and 3%.
Revenue for the quarter ended May 31 stood at $16.47 billion, compared with estimates of $16.53 billion.
Its reported third-quarter profit of $1.93 billion, compared with $2.01 billion a year earlier.
Quarterly new bookings, a metric indicating value of customer contracts with a spending commitment, was $21.06 billion, compared with $17.25 billion a year ago. Accenture reported new bookings of $21.58 billion in the prior three-month period.
(Reporting by Akash Sriram in Bengaluru; Editing by Devika Syamnath)
Artificial intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think and learn. It enables systems to perform tasks that typically require human intelligence, such as visual perception, speech recognition, and decision-making.
Cloud services provide computing resources over the internet, allowing users to access and store data remotely instead of on local servers. These services can include storage, databases, servers, networking, software, and analytics.
Revenue growth refers to the increase in a company's sales over a specific period, usually expressed as a percentage. It indicates the company's ability to generate more income from its business operations.
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