Accenture revenue grows 3% to $16.6 bn reflecting dip in IT spending

Accenture reported revenue of $16.6 billion (+3 percent) for the third quarter of fiscal 2023, ended May 31, 2023.
Accenture result Q3 FY 2023Accenture expects revenues for the fourth quarter of fiscal 2023 to be in the range of $15.75 billion to $16.35 billion, an increase of 2 percent to 6 percent.

For fiscal 2023, Accenture expects revenue growth to be in the range of 8 percent to 9 percent in local currency, compared to 8 percent to 10 percent previously.

Accenture said new bookings for the quarter were $17.2 billion, with consulting bookings of $8.9 billion and managed services bookings of $8.3 billion. Accenture has 26 clients with quarterly bookings of $100 million or more.

“Our third quarter results reflect solid bookings and revenue and very strong adjusted operating margin, earnings per share and free cash flow, which demonstrates the rigor and discipline with which we run our business,” Julie Sweet, chair and CEO, Accenture, said in its earnings report.

Accenture’s consulting revenues were $8.69 billion, a decrease of 4 percent. Accenture’s managed services revenues were $7.87 billion, an increase of 10 percent.

Accenture has generated revenue of $7.72 billion (+1 percent) from North America; $5.62 billion (+5 percent) from Europe; and $3.23 billion (+1 percent) from Growth Markets.

Accenture has generated third quarter of revenue of $2.88 billion (–11 percent) from Communications, Media & Technology; $3.14 billion (+2 percent) from Financial Services; $3.27 billion (+12 percent) from Health & Public Service; $4.97 billion (+3 percent) from Products and $2.31 billion (+8 percent) from Resources.

Cognizant Technology Solutions last month said it faced pressure in signing smaller contracts due to softer discretionary spending.

India’s outsourcing giant Tata Consultancy Services (TCS) said in April that U.S. recovery hadn’t materialized as expected.