Accenture Stock Jumps as AI-Related Bookings Soar

Core Insights - Accenture's shares increased following the release of third-quarter results, where revenue fell short of analysts' expectations, but net income exceeded them [1][2] - AI-related bookings showed significant growth, reaching $900 million for the quarter and totaling $2 billion for the fiscal year-to-date [1][3] - The company has adjusted its guidance for the full fiscal year, narrowing revenue growth projections and lowering earnings per share estimates [4] Financial Performance - Accenture reported third-quarter revenue of $16.47 billion, a decrease from $16.56 billion in the same quarter last year and below the expected $16.55 billion [1] - Net income for the quarter was $1.93 billion, or $3.04 per share, down from $2.01 billion and $3.15 per share last year, but above the expected $1.91 billion and $3.01 per share [2] AI and Bookings - The company achieved $900 million in new bookings related to generative AI for the quarter, contributing to a total of $2 billion in AI-related bookings year-to-date [3] - Overall new bookings reached $21.06 billion, reflecting a 22% increase from the previous year, with 44% from consulting services and 56% from managed services [3] Dividend and Share Buyback - Accenture declared a quarterly dividend of $1.29 per share, scheduled for payment on August 15, with a record date of July 11 [4] - The company repurchased $1.4 billion of its own stock during the quarter and has $3.3 billion remaining in its buyback plan [4] Guidance Adjustments - For the fourth quarter, Accenture projected revenue between $16.05 billion and $16.65 billion, compared to analyst estimates of $16.54 billion [4] - The full-year revenue growth guidance was adjusted to a range of 1.5% to 2.5%, narrowed from 1% to 3%, and diluted earnings per share guidance was lowered to $11.29 to $11.44 from $11.41 to $11.64 [4]