Accenture raises annual forecast as hybrid work models boost cloud-service demand

Julie Sweet CEO of Accenture attends the Fortune Global Forum in Paris
FILE PHOTO: Julie Sweet CEO of Accenture attends the Fortune Global Forum in Paris, France, November 19, 2019. REUTERS/Gonzalo Fuentes

June 24, 2021

(Reuters) -IT consulting firm Accenture Plc raised its full-year revenue forecast on Thursday, betting on strong demand for its digital, cloud and security services from businesses looking to strengthen their operations as they shift to hybrid working models.

The company, which has clients across industries including health and financial services, has announced 39 acquisitions for the fiscal year to date to ramp up its digital offerings and cater to businesses that were scrambling to switch to the cloud during the pandemic.

Analysts say that the demand for IT consulting services is at a 20-year high and is likely to stay elevated, as businesses across sectors depend on companies such as Accenture and its peers to adapt to a new hybrid work model.

Shares rose about 4% to $297 in premarket trading after the Dublin, Ireland-based company forecast full-year revenue growth in the range of 10%-11%, from its previous outlook range of 6.5%-8.5%. Analysts on average expected full-year revenue to be $49.17 billion, according to IBES data from Refinitiv.

Total new bookings in the third quarter ended May 31 rose 39% to $15.4 billion.

Revenue rose to $13.3 billion from $11 billion a year earlier. Analysts on average had estimated revenues of $12.8 billion.

Quarterly net income rose to $1.55 billion or $2.40 per share from $1.23 billion or $1.90 per share a year earlier.

(Reporting by Chavi Mehta in Bengaluru; Editing by Rashmi Aich)