:max_bytes(150000):strip_icc()/GettyImages-2169752120-525ac1ad3e9f46339a3f1f66634757b1.jpg "Accenture Stock Jumps as New Generative AI Bookings Power Results")
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Key Takeaways
- Accenture exceeded fourth-quarter revenue forecasts on rising demand for its generative AI services.
- The business management consulting firm’s new bookings were up 21% to $20.1 billion, and new generative AI bookings reached $1.0 billion.
- Accenture also raised its quarterly dividend and share repurchase program.
Accenture (ACN) shares surged Thursday when the business management consultant reported better-than-expected revenue and gave solid guidance as it boosted bookings on higher demand for generative artificial intelligence (Gen AI) services. The company also increased its dividend and stock buyback program.
The Dublin-based firm posted fourth-quarter revenue of $16.41 billion, up 2.6% year-over-year and ahead of consensus estimates of analysts polled by Visible Alpha. Earnings per share (EPS) of $2.66 and adjusted EPS of $2.79 matched estimates.
New bookings jumped 21% to $20.1 billion. New generative AI bookings reached $1.0 billion, and $3.0 billion for the fiscal year.
CEO Says GenAI Is ‘Most Transformative Technology of the Next Decade’
Chief Executive Officer (CEO) Julie Sweet said that Accenture continues “to accelerate our leadership in Generative AI, which we believe is the most transformative technology of the next decade.”
The company sees fiscal 2025 EPS of $12.55 to $12.91, while analysts surveyed by Visible Alpha were looking for $12.70.
Accenture raised its quarterly dividend 15% to $1.48, which will be paid on Nov. 15 to shareholders of record on Oct. 10. The board also approved an additional $4.0 billion in share repurchases, bringing the total outstanding authority up to $6.7 billion.
Accenture shares rose 5% to $354.07 Thursday morning, moving into positive territory for the year.