Accenture posted double digit growth in revenue in its latest quarter at a time when rivals are struggling to enhance performance.
Accenture has posted revenues of $9.6 billion (+10 percent) and operating income of $1.28 billion (+13 percent) with an operating margin of 13.4 percent in the second quarter of fiscal 2018, ended Feb. 28, 2018.
Pierre Nanterme, Accenture’s chairman and CEO, said, “Our new bookings of $10.3 billion demonstrate that we continue to provide highly relevant services to our clients.”
Accenture said high-growth areas including digital, cloud and security services together now account for more than 55 percent of total revenues.
Analyst firm TBR said Accenture’s success story continues with robust double-digit revenue growth at a time when direct competitors, many of which operate from global revenue bases that are a fraction of the size of Accenture’s, are struggling with low- to midsingle-digit performances.
Growth in Accenture main businesses
$1.93 billion (+15 percent) from Communications, Media & Technology
$2.02 billion (+7 percent) from Financial Services
$1.64 billion (+6 percent) from Health & Public Service
$2.63 billion (+10 percent) from Products
$1.34 billion (+11 percent) from Resources
Accenture revenues by geographic region
$4.28 billion (+8 percent) from North America
$3.48 billion (+10 percent) from Europe
$1.82 billion (+15 percent) from Growth Markets
TBR said well-timed execution of its early investments in the “new” (digital, cloud and security) are paying off and also paving the way for the company to invest in the new “new,” including blockchain, quantum and artificial intelligence.
“Generating profitable growth will be a key element to Accenture’s long-term success as it invests in IP and resources that pressure its operating margin in the short term,” TBR senior analyst Bozhidar Hristov, said.
Bozhidar Hristov said extended Reality and Industry X.0 are the latest steps in Accenture’s business model transformation into a trusted solution broker for clients.
Accenture, according to Bozhidar Hristov, continues to build out innovative portfolio offerings that expand its legacy services capabilities and set trends in areas such as extended reality and applied intelligence.
Accenture’s commitment to invest $1.4 billion in Industry X.0 and purchases of nearly 20 companies in the advertising and marketing domains over the past five years is a strong indicator of future targets as well as business model transformation. Deploying microservices architecture across industry clients can help Accenture accelerate digital transformation (DT) performance.
