Accenture Earnings Boost IT Services Sector
Accenture's (NYSE:ACN) quarterly earnings report exceeded Wall Street expectations, driving up the company's stock price by nearly 20% on Thursday. The IT services giant reported a 6% year-over-year revenue growth to $18.70 billion, surpassing analyst estimates of $18.03 billion. New bookings for the quarter totaled $22.2 billion, a 4% increase from last year.
Chef Executive Officer Julie Sweet attributed Accenture's success to its ability to secure a record-breaking 141 client deals worth at least $100 million each. The company's strong performance has alleviated concerns that artificial intelligence could disrupt labor-intensive services businesses, which had contributed to its 32% decline in stock price last year.
The news sent ripples through the software and IT services sector, with Cognizant (NASDAQ:CTSH), IBM (NYSE:IBM), and Wipro (NYSE:WPRO) also rising on Thursday. Analysts remain divided on the impact of AI on Accenture's business, but CEO Sweet views it as a growth opportunity.