New
Why Accenture Stock Jumped Today
Shares of Accenture (NYSE: ACN), which provides business and technology strategies to companies, jumped this morning after the company reported better-than-expected results for the fiscal first quarter of 2025, ended Nov. 30.
The company beat top- and bottom-line consensus estimates, spurring Accenture's management to raise the company's full-year revenue guidance. That sent the company's share price up 6.6% as of 11:46 am ET.
Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »
An impressive quarter
Accenture's revenue increased 9% in the first quarter (ending Nov. 30) to $17.7 billion, which was enough to beat Wall Street's consensus estimate of $17.1 billion. The company's generally accepted accounting principles (GAAP) earnings of $3.59 also easily outpaced analysts' consensus estimate of $3.42 in the quarter.
Accenture CEO Julie Sweet said in a press release, "We delivered broad-based revenue growth across both consulting and managed services, and across each market and industry group, gaining market share."
Two important figures from the quarter were the company's new bookings reaching $18.7 billion, including 30 client bookings of more than $100 million, and the company's $1.2 billion in generative artificial intelligence (AI) bookings. Investors have been keeping a close eye on the Accenture's expanding AI services, which can help companies with things like analytics, chatbots, and customer support.
A rosy outlook
Accenture raised its full-year 2025 revenue outlook following its strong quarterly results, with management estimating revenue growth to be in the range of 4% to 7%, up from its previous estimated range of 3% to 6%.
With growth in the company's AI bookings, top- and bottom-line results ahead of estimates, and the company raising its revenue outlook for the year, it's no surprise to see Accenture's stock gaining ground this morning.
Accenture's shares have a forward price-to-earnings ratio of 27.2 right now, which is slightly more expensive than the S&P 500's forward P/E ratio of 24.1. But the company's latest quarterly results indicate that Accenture's stock could have more room to run as the company continues to grow its AI enterprise services.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $334,266!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $46,976!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $479,727!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of December 16, 2024
Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Accenture Plc. The Motley Fool recommends the following options: long January 2025 $290 calls on Accenture Plc and short January 2025 $310 calls on Accenture Plc. The Motley Fool has a disclosure policy.
