'Accenture Projects Strong Revenue Growth in 2024 Thanks to AI Advancements'
Money | June 20, 2024, 7:23 a.m.
Accenture, a leading IT services provider, projects annual revenue growth above estimates due to increased adoption of artificial intelligence despite slower enterprise spending and a strong dollar. Even though economic uncertainty and high interest rates have led to subdued IT services demand, Accenture's expertise in cloud migration has shielded it from budget cuts. The company's focus on generative AI technologies has helped businesses automate operations, enhance productivity, and reduce costs. New bookings for the third quarter rose to $21.06 billion, with $900 million attributed to GenAI services. Accenture expects annual revenue growth between 1.5% and 2.5%, surpassing analysts' expectations. Quarterly profit was $1.93 billion, while revenue of $16.47 billion slightly missed estimates. Despite this, Accenture's forward-looking approach to technology positions it well for continued success in the IT services sector.