Accenture Lifts IBM Stock with Strong Earnings and Consulting Sector Boost

IBM stock gained on Thursday as strong earnings from Accenture boosted sentiment around the consulting sector. The company's shares rose as much as 5% during the session, while Accenture surged more than 20% after reporting stronger-than-expected results and raising its full-year outlook.

Accenture reported quarterly revenue of $9.28 billion, above analysts' expectations of $8.86 billion. Its stronger results and outlook suggested that its consulting business was holding up despite broader macroeconomic pressures and concerns about artificial intelligence disrupting traditional consulting services.

The strength in consulting was relevant for IBM because consulting is the company's second-largest business unit. IBM also generates a significant portion of its revenue from higher-margin software, while its legacy mainframe business remains part of its portfolio.