Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Investing

Accenture announces $4 billion share buyback as AI powers strong quarterly revenue

admin by admin
September 26, 2024
in Investing
0
Accenture announces $4 billion share buyback as AI powers strong quarterly revenue
0
SHARES
5
VIEWS
Share on FacebookShare on Twitter

Global IT services giant Accenture has revealed a $4.0 billion share buyback plan, signaling strong financial confidence as it continues to capitalize on growing demand for generative artificial intelligence (AI) solutions.

The announcement, made on Thursday, caused a near 7% surge in Accenture’s premarket share price, highlighting investors’ positive sentiment.

Q4 revenue beats expectations with generative AI driving growth

Accenture reported fourth-quarter revenue of $16.41 billion, marginally exceeding the analyst forecast of $16.38 billion, according to LSEG data.

The robust performance was bolstered by the company’s generative AI business, which has seen consistent growth over the past four quarters.

Generative AI contributed significantly to Accenture’s overall new bookings, accounting for $1 billion in the fourth quarter, compared to $900 million in the prior quarter.

Julie Sweet, Accenture’s Chair and CEO, highlighted the transformative potential of AI, stating,

We continue to accelerate our leadership in Generative AI, which we believe is the most transformative technology of the next decade, delivering $3 billion in new bookings for the year.

Strong bookings underscore resilient demand

Accenture’s new bookings, a key metric that reflects the value of customer contracts with future spending commitments, climbed to $20.1 billion in Q4, up from $17.25 billion in Q3.

Consulting new bookings were $8.6 billion, or 43% of total new bookings while managed services new bookings were $11.6 billion, or 57% of total new bookings.

Accenture’s fiscal 2024 performance saw $81 billion in new bookings, with 125 client deals exceeding $100 million. Sweet said, “We’ve secured 310 major clients and achieved $3 billion in generative AI bookings.”

The bookings growth helped offset a general slowdown in IT services demand, positioning the company as a leader in AI technology adoption.

Future business outlook

Despite the strong results, Accenture’s outlook for fiscal 2025 predicts slightly slower revenue growth of 3% to 6%, which is below Wall Street expectations.

The company cited foreign exchange impacts and potential market headwinds but remains optimistic about its growth trajectory in the AI space.

The information technology company expects its earnings per share in the range of $12.55-12.91 in 2025, an increase of 10-13% from 2024, it said.

Excluding items, the company expects an increase of 5-8% in its earnings per share.

For fiscal 2025, the company expects operating cash flow to be in the range of $9.4 billion to $10.1 billion; property and equipment additions to be $600 million; and free cash flow to be in the range of $8.8 billion to $9.5 billion.

The company expects to return at least $8.3 billion in cash to shareholders through dividends and share repurchases.

Accenture’s stock has performed well over the past year, climbing 7.21% in the last 12 months.

The post Accenture announces $4 billion share buyback as AI powers strong quarterly revenue appeared first on Invezz

Previous Post

Long VALE: strong support at $11 signals potential bullish breakout with upside momentum ahead

Next Post

Oil prices keep dropping: Saudi Arabia shifts away from $100 target as it aims to reclaim market dominance

admin

admin

Next Post
Oil prices keep dropping: Saudi Arabia shifts away from $100 target as it aims to reclaim market dominance

Oil prices keep dropping: Saudi Arabia shifts away from $100 target as it aims to reclaim market dominance

Trending News

JEPQ and QYLD are good Nasdaq ETFs: here’s a better alternative

JEPQ and QYLD are good Nasdaq ETFs: here’s a better alternative

October 10, 2024
Nvidia refutes rumors of cutting supply to China

Nvidia refutes rumors of cutting supply to China

December 12, 2024
LA wildfires: death toll rises to 24, Trump slams emergency response

LA wildfires: death toll rises to 24, Trump slams emergency response

January 13, 2025
Subscribe to Insightful Word


    Recent News

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    June 26, 2025
    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    June 26, 2025
    S&P 500 nears record high as Wall Street opens higher amid tech momentum

    S&P 500 nears record high as Wall Street opens higher amid tech momentum

    June 26, 2025
    Galaxy Digital launches $175 million fund to back DeFi and stablecoin startups

    Galaxy Digital launches $175 million fund to back DeFi and stablecoin startups

    June 26, 2025

    Recent News

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    June 26, 2025
    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    June 26, 2025

    Latest News

    • S&P 500 nears record high despite headwinds: key drivers behind the surprise rally
    • Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high
    • S&P 500 nears record high as Wall Street opens higher amid tech momentum

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.