Accenture's forecast eases AI disruption fears, lifts battered IT services stocks
ACN•Accenture forecast fiscal 2027 revenue growth of 3% to 6%, above analysts’ average estimate of 3.9%, and its shares surged 22%. Fourth-quarter bookings rose 4% to $22.17 billion, while sales reached $18.68 billion, beating estimates.
1. Forecast lifts shares
Accenture shares surged 22% after the company forecast annual revenue growth of 3% to 6% in fiscal 2027. The midpoint is above analysts’ average estimate of 3.9%. The outlook also lifted peers: Cognizant rose about 8%, IBM about 3%, and US-listed shares of Wipro and Infosys gained between 6% and 7%.
2. Quarterly results and plans
Accenture’s fourth-quarter bookings rose 4% to $22.17 billion. Consulting revenue grew 7% to $9.28 billion, helping lift total sales to $18.68 billion, above estimates of $18.03 billion. CEO Julie Sweet said the company expects to deploy approximately $5 billion on acquisitions in fiscal 2027, based on opportunities it sees today.
3. Industry pressures
Accenture said its pricing was lower in many areas during the quarter as clients push for a share of savings from AI. The company’s shares had been down about a third this year before Thursday, while IT services firms lagged a recovery in software stocks.
