Accenture shares surged 22 per cent after the world’s largest publicly traded consulting group reported an 8 per cent rise in earnings for the 12 months to August, benefiting from cost-cutting and AI-driven productivity. The company reported revenues of $74.2bn, a 4 per cent increase, with a stronger than expected final quarter. Julie Sweet, chief executive, said Accenture was taking share from rivals in a difficult market, noting that clients are at different stages of AI readiness.
Sweet stated that much of the growth comes from building digital cores, with many just starting their AI journey. The company allowed staff to carry over unused holiday to complete work in the final weeks of the fiscal year. Accenture set a target of 3 to 6 per cent growth for the current fiscal year, with Wall Street expecting around 4 per cent for the mid-point.
Net income for the fiscal year was $8.4bn, up 8 per cent, helped by job cuts and other cost-reduction measures. In the past three months, Accenture added more than 15,000 new jobs, taking its global workforce to more than 814,000. The share price rise took the consultancy’s market capitalisation to more than $135bn, up from less than $80bn earlier this year.
Sweet said Accenture would continue to expand entry-level hiring, but overall growth in employee numbers would slow due to AI, noting an increase in revenue per person.
Source: Financial Times Companies · Summarized by HeadlinesBriefing