Accenture has unveiled a $4 billion share repurchase program following a robust performance in its fourth quarter, largely driven by increased demand for its generative AI services. According to LSEG data, Accenture posted earnings of $2.79 per share, narrowly surpassing analysts’ expectations of $2.78 per share.
Generative AI has emerged as a significant growth engine for the company, with bookings surpassing $3 billion over the past year. The surge in automation highlights how businesses are increasingly relying on AI to cut costs and enhance productivity.
Following the release of these results, Accenture’s shares saw a more than 3% increase on Thursday, contributing to a 20.4% rise in the Nasdaq index. This gain marked a recovery from an earlier decline of nearly 4% for the year.
Despite Accenture’s strong performance, its growth forecast of 3% to 6% for the upcoming year fell slightly short of the market’s expectations, with analysts projecting an average of 5.9%. JP Morgan analysts adopted a more cautious stance on the IT services sector, predicting that clients would continue to restrict their discretionary project spending.
Accenture has also shifted its primary promotion cycle from December to June, a move the company says is intended to better align with client strategies.
However, analysts at Morgan Stanley expressed concerns that this shift could affect the company’s near-term recovery prospects. Meanwhile, Tata Consultancy Services (TCS), a key player in India’s IT sector, slightly exceeded its first-quarter revenue expectations but remains cautious about forecasting further growth in the coming quarters.
