Accenture Q3 Earnings Miss, Stock Up 7% on $900M Generative AI Bookings, Raises 2024 Revenue Forecast

Jun 20, 2024, 11:22 AM

Accenture has reported its third-quarter fiscal 2024 earnings, missing analyst expectations slightly. The company posted an adjusted EPS of $3.13, below the forecasted $3.17, and revenues of $16.5 billion, short of the expected $16.6 billion. Despite these misses, Accenture's stock surged by 7% in premarket trading, driven by significant generative AI bookings of over $900 million, up from $600 million in the previous quarter. Accenture has adjusted its revenue growth forecast for fiscal 2024 to 1.5%-2.5%, citing economic uncertainties impacting client spending on consulting services. However, the increased demand for AI services is expected to offset this slowdown, leading to an optimistic outlook for the year. The company's market cap stands at $179.41 billion, with Q3 new bookings totaling $21.1 billion. Additionally, Accenture's headcount increased by 8,000 in Q3, and net income was reported at $1.98 billion.