Accenture (NYSE:ACN) delivered better-than-expected second-quarter results, but shares dropped more than 8% intra-day today.
For the quarter, earnings per share came in at $2.82, narrowly surpassing the analyst estimate of $2.81. Revenue reached $16.7 billion, marking an 8.5% increase in local currency, and exceeding the $16.63 billion consensus forecast.
While overall bookings totaled $20.9 billion, falling 3.2% year-over-year and missing the $21.69 billion estimate, generative AI-related deals contributed $1.4 billion, reflecting the growing role of AI-driven transformation in client strategies.
The company’s gross margin declined to 29.9% from 30.9% a year earlier, missing expectations of 31.2%, but operating margin improved to 13.5%, up from 13% last year, highlighting operational efficiencies.
Looking ahead, Accenture narrowed its full-year EPS guidance to $12.55-$12.79, tightening its prior range of $12.43-$12.79, with analysts expecting $12.72. The company raised its revenue growth forecast to 5%-7%, improving on its previous projection of 4%-7%.