Accenture's Q4 Profit Surges 22.6% on GenAI Deals

CIOTechOutlook Team | Friday, 27 September 2024, 05:52 IST

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Accenture, the largest technology services provider in the world, saw a 22.6% increase in its net profit to $1.68 billion for the fourth quarter ending in August 2024 compared to the previous year. This is in contrast to a profit of $1.37 billion in the quarter of June-August 2023.

The increase in profits was driven by strong growth in North America and the health & public services sector, supported by strong new bookings, particularly in generative artificial intelligence (GenAI) contracts.

The IT company listed on Nasdaq raised its yearly revenue growth prediction for 2025 to 3-6%, with 2-3% attributed to mergers and acquisitions (M&A). This is due to the better macroeconomic conditions and the recent 0.5% interest rate cut by the US Federal Reserve.

Accenture operates on a fiscal year from September to August. The Accenture forecast is a significant measure of how key Indian IT companies will perform as they begin reporting their quarterly earnings, beginning with Tata Consultancy Services in early October.

The company's fourth quarter earnings reached $16.4 billion, with a 3% rise in US dollars and a 5% increase in local currency due to stronger growth in managed services compared to consulting revenue.

The consulting revenues of the IT company based in Ireland increased by 1% in dollars and 3% in local currency, reaching $8.26 billion in comparison to the fourth quarter of fiscal 2023. Revenue from Managed Services grew to $8.15 billion, showing a 5% and 7% increase in dollar and local currency compared to the previous year.

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