Accenture Plc has lowered its revenue growth guidance for the fiscal ending Aug. 31, as its consulting business comes under pressure due to a slowdown in dealmaking.
Revenue of the world's biggest IT company by market capitalisation rose 3% year-on-year to $16.6 billion in the three months ended May 31, according to a statement on Thursday. That compares with the $16.5-billion consensus estimate of analysts tracked by Bloomberg.
Accenture Q3 Results FY23: Key Highlights (YoY)
Revenue up 3% to $16.6 billion (Bloomberg estimate: $16.5 billion).
Operating income down 9% to $2.36 billion, or 14.2% of revenue.
Adjusted earnings per share up 14% to $3.19 per share (Bloomberg estimate: $2.99).
Revenue growth guidance for FY23 pared to 8–9% from 8–10%.
In the March-May quarter, the Ireland-based IT consultancy clocked new bookings worth $17.25 billion—a 2% rise in dollar terms over the year-ago period. Bloomberg had estimated the figure at $18.23 billion.
Consulting bookings stood at $8.93 billion, against an estimated $9.39 billion.
Outsourcing bookings stood at $8.32 billion as compared with an estimated $8.85 billion.
"Our third quarter results reflect solid bookings and revenue and a very strong adjusted operating margin and earnings per share, which demonstrate the rigour and discipline with which we run our business," said Julie Sweet, chief executive officer at Accenture.
"The strength of our strategy to be our clients' transformation partner of choice continues to resonate, with 26 clients with quarterly bookings of $100 million or more."
Accenture's quarterly results serve as a benchmark for India's IT services firms, especially now since growth in the $245 billion industry has come off pandemic highs and is in the throes of a slowdown. While April-June was deemed a washout, a recent JPMorgan Chase & Co. report indicated that the situation is unlikely to improve for the rest of fiscal 2024.
Accenture expects its revenue for the June–August quarter to be between $15.75 billion and $16.35 billion—an increase of 2–6% in local currency, reflecting the company's assumption of a flat foreign exchange impact as compared with the fourth quarter of fiscal 2022.
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