Nasdaq-listed IT services major Accenture, reported second-quarter results that exceeded Bloomberg estimates on revenue and earnings, supported by steady demand for artificial intelligence-led transformation, but a softer third-quarter outlook weighed on investor sentiment and dragged shares lower in pre-market trading.
Revenue for the February quarter rose 8.3% year-on-year to $18.04 billion, ahead of Bloomberg consensus estimates of $17.86 billion. Earnings per share came in at $2.93 compared with $2.82 a year earlier. The company reported bookings of $22.1 billion, up 5.7%, broadly in line with expectations, reflecting continued deal momentum even as client spending remains measured.
Accenture follows a September-August financial year.
Accenture said consulting bookings rose 8.2% to $11.33 billion, while managed services bookings increased 3.3% to $10.78 billion. The company reiterated that it would no longer report standalone AI bookings and revenues, stating that AI is now embedded across most engagements, making the metric less meaningful.
Chief executive Julie Sweet said the company was accelerating enterprise-scale AI deployments and seeing strong AI-driven growth, adding that recent acquisitions would help expand capabilities. She said revenues were at the top end of the guided range and that the company continued to gain share in a competitive market.
Sectoral Performance Peaks
Segment-wise, products — the largest vertical — grew 8.4% to $5.48 billion. Financial services and communications, media and technology each grew 13%, while health and public services rose 1.7%. Resources revenue increased 6.8%. Geographically, North America grew 4% to $8.9 billion, while Europe, Middle East and Africa rose 13% to $6.57 billion. Other markets, including Asia Pacific, grew about 12%.
Despite the strong quarterly print, guidance for the May quarter came in slightly below expectations at the midpoint. Accenture expects third-quarter revenue in the range of $18.35 billion to $19 billion, compared with Bloomberg consensus estimates of about $18.75 billion, implying growth of 1–5%.
Fiscal Outlook
For the full year ending August, the company revised its revenue growth guidance to 3–5% from 2–5% earlier. It raised its adjusted earnings per share outlook to $13.65–$13.90, compared with a prior range of $13.52–$13.90, and above the Bloomberg estimate of $13.84 at the midpoint. Operating cash flow is now expected at $11.5–$12.2 billion, while free cash flow is projected at $10.8–$11.5 billion.
Operating margin expanded 30 basis points to 13.8% in the quarter, while free cash flow rose 37% year-on-year to $3.67 billion.
Accenture’s results are closely tracked as a bellwether for the Indian IT services sector, given its large India workforce and similar client exposure. The mix of strong bookings and improved full-year outlook, alongside cautious near-term guidance, points to stable demand recovery led by AI, but with continued scrutiny on discretionary spending.