Nasdaq-listed IT services major Accenture on Thursday raised its revenue growth outlook for fiscal 2027 and reported better-than-expected fourth-quarter revenue and bookings, offering a positive read-through for global technology spending and lifting American depositary receipts (ADR) of Indian IT companies in early trading.
Accenture expects revenue growth of 3-6% in local currency in FY27, compared with the 3-4% guidance it had given in the quarter ended May. The company expects first-quarter revenue of $18.95-19.60 billion, against Bloomberg estimates of $19.35-19.36 billion.
Revenue for the quarter ended August rose 7% year-on-year to $18.7 billion, beating the Bloomberg estimate of $18.04 billion. New bookings, a key indicator of future demand, came in at $22.2 billion, above the roughly $20 billion expected by analysts and 5% higher in local currency than the year-ago period. Accenture shares jumped more than 10% in pre-market trading in New York following the results. GAAP diluted earnings per share rose 46% to $3.29 from $2.25 a year earlier. For FY27, the company expects GAAP diluted EPS of $14.39-14.81, representing growth of 6-9%.
The Dublin-headquartered company, which follows a September-August financial year, is closely watched as a bellwether for global technology spending, particularly at a time when the traditional IT services model is being reshaped by artificial intelligence. Accenture’s results come against growing investor concerns over whether large technology services companies can maintain growth as clients shift spending towards AI and automation. Its shares have fallen about 56% from their record high in late 2021, according to Bloomberg, although the latest results provided some relief on the demand front.
Chief Executive Julie Sweet said the company had seen strong demand for large-scale AI-led transformations, although clients remained at different stages of adoption. “Much of our growth today comes from continuing to build their digital core data foundations and the enterprise AI stack that they need to use AI at scale,” she said. Nearly 100 additional clients began their first advanced AI work with Accenture during the quarter, taking the fiscal 2026 total to more than 400. The company also recorded 141 quarterly bookings of $100 million or more, a new high.
Accenture’s consulting revenue rose 7% to $9.28 billion, while managed services bookings increased 7% to $9.40 billion. Among its industry segments, products revenue grew 3% to $5.56 billion, while financial services rose 6%, communications, media and technology increased 11%, health and public services grew 9% and resources expanded 6%. Revenue from the Americas rose 7% to $9.43 billion and Europe, the Middle East and Africa grew 7% to $6.58 billion, while Asia Pacific also recorded 7% growth.
Sweet said demand had not materially changed despite continued geopolitical headwinds, including the direct impact of the Middle East conflict, which worsened during the quarter. However, smaller deals picked up as discretionary spending on products and resources stabilised. Accenture’s GAAP operating margin expanded 70 basis points to 15.3%, while adjusted operating margin rose 20 basis points to 15.8%. The company said it expects to return at least $9.5 billion to shareholders in FY27.