News: Accenture’s business grows at pre-pandemic levels, raises revenue forecast.
(Reuters) – IT consultancy Accenture announced Thursday that it has returned to pre-pandemic growth levels and raised its full-year revenue forecast as more companies use their digital services to move operations to the cloud.
The company’s shares rose 4.1% in premarket trading to $ 275.05.
After the COVID-19 pandemic forced companies to accelerate their move to the cloud, Accenture doubled its digital services through aggressive investments in technology.
The company, which has clients across a variety of industries including healthcare and financial services, acquired a number of cloud-focused companies in the second quarter.
“We returned to pre-pandemic overall growth ahead of expectations and continued to gain market share faster than pre-pandemic,” said Julie Sweet, Accenture chief executive officer.
For the second quarter, the company reported a record $ 16 billion in new bookings, up 13% year over year.
“The return of demand to pre-pandemic levels is a trend that is being reported by many other IT services companies. All of these companies have a strong presence in the digital space (organically or through acquisitions),” said Moshe Katri, an analyst at Wedbush.
Accenture now expects full-year revenue growth between 6.5% and 8.5% in local currency, compared to the previous outlook of 4% to 6%. According to IBES data from Refinitiv, analysts had expected sales of 47.83 billion US dollars for the full year.
Revenue increased 8.5% to $ 12.09 billion for the quarter ended February 28, compared to analyst estimates of $ 11.83 billion.
On an adjusted basis, Accenture earned $ 2.03 per share, beating expectations of $ 1.90 per share.
Reporting by Chavi Mehta in Bengaluru; Adaptation of Subhranshu Sahu and Shounak Dasgupta
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