Accenture PLC (ACN.US) shares declined by more than 1.4% to $269.74 on Thursday, despite reporting stronger-than-expected Q1 results, showcasing sustained growth momentum in digital and artificial intelligence (AI) sectors.

The company posted non-GAAP adjusted earnings per share (EPS) of $3.94, surpassing market expectations. Revenue reached $18.74 billion, up 5.9% year-over-year (YoY) and approximately $210 million above analyst forecasts. New bookings totaled $20.9 billion, reflecting a 12% YoY increase in USD terms (10% in local currency), with AI-related orders hitting $2.2 billion—highlighting rising corporate investments in AI transformation.

Accenture generated $1.5 billion in free cash flow during the quarter and returned $3.3 billion to shareholders via buybacks and dividends. This included $2.3 billion (9.5 million shares) in share repurchases and $1 billion in cash dividends ($1.63 per share, up 10% YoY).

For Q2, the company provided revenue guidance of $17.78 billion, aligning with consensus estimates. Full-year revenue growth is projected at 2%–5% in local currency terms. Excluding an estimated 1% drag from U.S. federal government contracts, growth could reach 3%–6%, slightly below the market’s prior 5.6% YoY expectation.

Accenture raised its GAAP operating margin forecast to 15.2%–15.4% (50–70 basis points expansion YoY), while adjusted operating margin guidance remains at 15.7%–15.9% (10–30 bps expansion). The company also lifted its GAAP diluted EPS outlook to $13.12–$13.50 (8%–11% YoY growth), with adjusted EPS projected at $13.52–$13.90, modestly above the $13.77 consensus.