Accenture, a leading IT services provider, has revised down its fiscal-year 2024 revenue forecast due to a wavering economy, prompting clients to curtail spending on consulting services.
Accenture, according to the revised projection, anticipates full-year revenue growth to be in the range of 1 percent to 3 percent, down from the previous forecast of 2 percent to 5 percent. This adjustment comes as Accenture faces sluggish demand for its IT and consulting services, exacerbated by high interest rates and a murky economic outlook, leading clients to exercise caution in their expenditures.
Analysts note that after a period of heightened spending by clients during the pandemic, growth in the industry has been decelerating over the past six quarters. Accenture also provided a forecast for third-quarter revenue, expecting it to fall within the range of $16.25 billion to $16.85 billion.
REVENUE
Accenture reported its results for the second quarter of fiscal 2024, which concluded on February 29, 2024. During this period, revenues stood at $15.8 billion, remaining flat compared to the same quarter of the previous fiscal year.
Breaking down the revenue streams, consulting revenues for the quarter totaled $8.02 billion, marking a 3 percent decline compared to the second quarter of fiscal 2023. Managed services revenues, however, rose 3 percent, reaching $7.78 billion.
Julie Sweet, Chair and CEO of Accenture, in its earnings report highlighted its role as a trusted partner for clients seeking reinvention, with a record number of significant quarterly bookings and substantial investments in generative AI and strategic acquisitions.
Accenture added 39 clients with quarterly bookings of over $100 million. Accenture also extended early lead in generative AI with $1.1 billion in new bookings in the first half of the year.
Accenture said new bookings in the second quarter of fiscal 2024 reached $21.58 billion, representing a 2 percent decrease. Consulting new bookings accounted for 49 percent of total new bookings, while managed services new bookings comprised the remaining 51 percent.
In terms of geographic market performance, revenues in North America remained steady at $7.38 billion, while the EMEA region saw an increase of 1 percent. Growth Markets experienced a decline of 1 percent.
Accenture has generated sales of $2.65 billion (decrease of 8 percent) from Communications, Media & Technology; $2.81 billion (decrease of 6 percent) from Financial Services; $3.33 billion (increase of 10 percent) from Health & Public Service; $4.76 billion (increase of 1 percent) from Products and $2.24 billion (increase of 3 percent) from Resources.
Baburajan Kizhakedath
