Accenture PLC's stock jumped 3% in the first hour of trade on the New York Stock Exchange, after the company exceeded expectations in its second quarter earnings. As of 10:42 a.m. EST, Accenture traded 4.3% higher at $203.60 on the NYSE.
The global professional services giant registered a 8% rise in its revenue to $18 billion, compared to Bloomberg consensus estimate of $17.86 billion, as per its earnings statement released earlier on Thursday.
The Dublin-based company also posted record second-quarter bookings, up 6% to $22.1 billion. Diluted earnings per share grew 4% to $2.93.
"We delivered record second quarter bookings of $22.1 billion, including a record 41 clients with quarterly bookings greater than $100 million, with revenues at the top of our guided range, while continuing to take significant share in a competitive market," said Accenture Chair and CEO Julie Sweet.
She added that the company's new strategic acquisitions will further strengthen their capabilities and expand their scale to help clients create value and achieve AI-based transformation. Accenture's operating margin expanded by 30 basis points to 13.8%, and free cash flow stood at $3.7 billion.
ALSO READ: Accenture Q2 Results: Revenue Up 8%, New Bookings At $22 Billion
Growth Outlook
The company said that it now expects full-year revenue growth to be 3% to 5% in local currency, excluding an estimated 1% impact from its US federal business, company now expects revenue growth to be 4% to 6% in local currency.
Full-year GAAP diluted earnings per share to be in the range of $13.25 to $13.50, a 9% to 11% increase, the company said.
It sees full-year adjusted earnings to rise by 6% to 8% in the range of $13.65 to $13.90. Accenture has raised its full-year free cash flow expectation. It now expects free cash flow to be in the range of $10.8 billion to $11.5 billion.
Wall Street Check
Accenture's gains, however, were not enough to change the sour note of the main US market indices, which opened sharply lower today. Wall Street extended losses from the FOMC's decision to hold fund rates steady the previous day.
Tech-heavy Nasdaq index sank 1.27% or nearly 300 points lower to open at 21,872.07, both S&P 500 and Dow Jones Industrial Average opened nearly 1% lower at 6,562.98 and 45,810.54 respectively.
The indices had plunged at close on Wednesday, marking its sharpest post-Fed decision declines since December 2024. The Dow dropped roughly 768 points or 1.6%, while the S&P 500 and Nasdaq fell 1.4% and 1.5%, respectively.
ALSO READ: Nasdaq Slumps Over 1%; Dow Jones, S&P 500 Extend Losses After Fed Decision To Hold Rate
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