Accenture Stock is Heading for Its Best Day Ever. AI Isn't the Threat Everyone Thought.

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Accenture stock was heading for its best day on record Thursday after the consulting company reported better-than-expected fiscal fourth-quarter earnings. Rising new bookings helped brush off mounting concerns that artificial intelligence would disrupt consulting firms.

Accenture's latest earnings signal a turnaround after several quarters of bein weighed down by revenue stagnation, softer consulting bookings, and persistent fears that AI would dampen traditional IT consulting spending.

In the fiscal third quarter, Accenture's new bookings declined 3% in local currency from the year before, totaling $19.32 billion. In the latest quarter, however, that figure rose to $22.2 billion, up 5% in local currency. CEO Julie Sweet said Thursday that Accenture had reached a new high of 141 quarterly client bookings of $100 million or more.

Accenture stock jumped 19% to $217.62 Thursday, on pace to log its best day on record, according to Dow Jones Market Data. Shares had rallied ahead of earnings, closing up 3.5% at $183.37 Wednesday.

Consulting revenue totaled $9.28 billion in the fiscal fourth quarter, up 7% in local currency from a year before. The number topped analysts' calls for $8.86 billion.

Prior to this shift, Accenture trimmed its guidance for fiscal 2026 in the fiscal third quarter, citing a pullback in corporate spending and lower-than-expected new order bookings. The disappointment triggered a 18% selloff on June 18, the day Accenture released its fiscal third-quarter earnings.

While Accenture has consistently topped Wall Street's estimates for its bottom-line earnings per share, the stock price has rarely moved in step with those earnings beats.

Accenture shares rose 4.3% following its fiscal second-quarter earnings release on March 19, according to Dow Jones Market Data. The last time the stock rose significantly after earnings was on Dec. 19, 2024, when Accenture reported its first-quarter earnings for fiscal 2025.

Revenue for the fiscal fourth quarter totaled $18.7 billion in 2026, beating analysts' estimates of $18.03 billion. Adjusted earnings of $3.29 a share also topped Wall Street's calls for $3.18.

Accenture outlined its guidance for fiscal 2027, expecting revenue growth range of 3% to 6% in local currency. The company also expects adjusted earnings to increase between 3% and 6% during that same period.

Adjusted earnings of $13.97 a share for the fiscal year ended Aug. 31 beat Wall Street's consensus projections for $13.86. Revenue in the period totaled $74.2 billion, above consensus estimates of $73.56 billion.

Both revenue and adjusted earnings topped Accenture's previous guidance. In the fiscal third quarter, management had tweaked its fiscal 2026 outlook, expecting revenue to grow in a range of 3% to 4% in local currency, down from a prior range of 3% to 5%. Accenture had projected fiscal 2026 adjusted earnings to range from $13.78 to $13.90 a share.

Jefferies analyst Surinder Thind noted that Accenture's earnings were "better than feared," citing strong consulting revenue and new bookings growth. He added that while client spending remains more modest than historical levels, demand for consulting services is nowhere near slowing down. The firm maintained its Hold rating and $190 price target on the stock.

Analysts at Baird wrote Thursday that Accenture's earnings were "strong" thanks to solid revenue and bookings growth. The firm added that Accenture's fiscal 2027 and earnings guidance were both in line with consensus estimates, which they think should help ease investor fears on AI. The firm has an Outperform rating on the stock.

Accenture returned a record $11.5 billion to shareholders during the year, up 38% from fiscal 2025.

Accenture's earnings offered an encouraging sign for an industry weighed down by AI fears. helping boost shares of rival IBM up 2.7% Thursday.

The strong performance follows Accenture and Anthropic's joint AI safety partnership announced almost two weeks ago. Through Accenture's specialist AI unit, Faculty, the companies will embed independent safety evaluators within Anthropic. The pair anticipate investing at least $1 billion in AI safety evaluation over the next five years.

The partnership builds on Accenture's existing AI collaborations with major technology companies, including Alphabet-owned Google. The alliance pairs Google Cloud's tech stack, including Gemini AI, with Accenture's industry teams to help enterprises automate workflow, analyze trends, and strengthen cybersecurity.

Accenture shares may be down nearly 18% this year on fears that AI could disrupt its core operations, but the numbers may suggest otherwise. AI is looking less like a threat and more like a catalyst, with Accenture's expansion into AI safety positioned to propel the stock.

 

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