Accenture Q2 revenue just beats estimates on record bookings, raises sales outlook

Overview

• IT consulting firm's Q2 revenue slightly beat analyst expectations, rising 8% yr/yr to $18 bln

• Adjusted EPS for Q2 rose 4% yr/yr to $2.93

• Company reported record $22.1 bln in new bookings and raised full-yr revenue growth outlook

Outlook

• Accenture expects full-year revenue growth of 3% to 5% in local currency

• Company expects full-year GAAP EPS of $13.25 to $13.50; adjusted EPS of $13.65 to $13.90

• Accenture raises full-year free cash flow expectation to $10.8 bln to $11.5 bln

Result Drivers

• RECORD BOOKINGS - Co reported record Q2 bookings of $22.1 bln, including 41 clients with bookings over $100 mln

• AI-DRIVEN GROWTH - Co said accelerating client adoption of advanced AI drove growth in the qtr

• STRATEGIC ACQUISITIONS - Co said recent acquisitions expanded capabilities and scale to support client transformation

Company press release: ID:nBw6Yq7vZa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy"

• Wall Street's median 12-month price target for Accenture PLC is $275.00, about 40.9% above its March 18 closing price of $195.15

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 18 three months ago

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