Core Insights - IBM and Accenture are key players in digital transformation and consulting, focusing on technology and business processes powered by AI and cloud architecture [1][2][3] IBM's Position - IBM's Consulting business is experiencing growth in technology consulting, supply chain, and business application transformations, leveraging AI technologies and a broad partner ecosystem [4][5] - The IBM Consulting Advantage platform provides industry-specific AI assistants, enhancing the delivery of solutions and accelerating time to value [4] - IBM's collaboration with SAP aims to integrate generative AI in the retail sector, improving productivity and business transformation [5] - Despite these strengths, IBM faces challenges with a 10.5% year-over-year decrease in consulting signings due to macroeconomic uncertainty and competition from firms like Accenture [6] - IBM is addressing these challenges through innovation and acquisitions, including the purchase of Hakkoda Inc. to enhance its data consultancy capabilities [7] Accenture's Position - Accenture benefits from increased spending on application modernization, cloud enablement, and cybersecurity, driving demand for its managed services [8] - The company emphasizes building a robust digital core through cloud, data, and AI, and collaborates with major tech firms to enhance its competitive edge [9][10] - Accenture has seen steady customer growth, particularly in the finance sector, and is actively acquiring companies to enter high-growth areas [10] - However, integration risks from acquisitions and competition from IBM and others may impact organic growth [11] Financial Estimates and Performance - The Zacks Consensus Estimate for IBM's 2025 sales and EPS indicates year-over-year growth of 5.5% and 6%, respectively, with positive trends in EPS estimates [12] - For Accenture, the 2025 sales and EPS estimates imply growth of 5.41% and 6.11%, but the EPS estimate for 2026 has been trending downward [12] - Over the past year, IBM's stock has increased by 50.5%, while Accenture's has only gained 3.1% [14] - IBM's shares trade at a forward P/E ratio of 23.02, slightly lower than Accenture's 23.95 [15] Investment Outlook - Both companies hold a Zacks Rank 3 (Hold), but IBM's technology portfolio and recent performance suggest it may be a more attractive investment option at this time [16][17]

Core Insights - IBM has established a new Microsoft Practice within IBM Consulting to enhance business outcomes for clients undergoing AI, cloud, and security transformations [1][2] - The new practice integrates IBM's industry expertise with Microsoft's technology portfolio, including Copilot, Azure OpenAI, and Azure Cloud, to simplify digital transformation for businesses [2][4] Company Developments - The Microsoft Practice will leverage a team of over 33,000 Microsoft-certified professionals across various markets, aiming to deliver tailored solutions for clients [3] - This initiative is expected to foster innovation and operational excellence, helping businesses unlock new growth opportunities [5] Client Impact - The practice will focus on developing industry-specific solutions for sectors such as retail, government, and financial services, building on existing offerings like IBM Copilot Runway [5][6] - IBM has successfully completed over 14,000 Microsoft projects globally, demonstrating its capability in implementing Microsoft generative AI solutions [6] Technology Integration - The Microsoft Practice will incorporate Microsoft's technology ecosystem into IBM Consulting's AI-powered delivery platform, enhancing flexibility and governance for clients [4][7] - More than 30 IBM Software offerings are already running on Microsoft Azure, facilitating easy integration for automation and AI solutions [7]

International Business Machines Corporation (IBM) is scheduled to report first-quarter 2025 results on April 23, after the closing bell. In the to-be-reported quarter, the company is likely to have recorded lower revenues from the Consulting segment owing to the persistence of uncertainty in some end markets stemming from macroeconomic headwinds. However, a strong focus on product innovation and multiple deal wins is a tailwind.  Factors at PlayIBM’s Consulting segment provides strategy and technology and i ...

ARMONK, N.Y., April 7, 2025 /PRNewswire/ -- IBM (NYSE: IBM) today announced it has acquired Hakkoda Inc., a leading global data and AI consultancy. Hakkoda will expand IBM Consulting's data transformation services portfolio, adding specialized data platform expertise to help clients get their data ready to fuel AI-powered business operations.Hakkoda has leading capabilities in migrating, modernizing, and monetizing data estates and is an award-winning Snowflake partner. This acquisition amplifies IBM's abil ...