Accenture displays resilience in Q2 fiscal 2024 results

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Accenture has reported its second quarter fiscal 2024 financial results, showing resilience amid a relatively flat quarter, as it fortifies AI efforts with $1.1bn in new bookings over fiscal H1.

For the quarter ending February 29, 2024, the company demonstrated revenues of $15.8bn, flat in both US dollars and local currency, with consulting revenues of $8.0bn and managed services revenues of $7.8bn.

Highlighting the company’s wins, Julie Sweet, Accenture’s chair and CEO, said during the earnings call: “In an uncertain macro environment, we remain the trusted partner to our clients for reinvention with a record 39 clients with quarterly bookings of over $100m. 

“We also extended our early lead in generative AI with $1.1bn in new bookings in the first half of the year.”

In fiscal H1, the company saw over $600m in new GenAI bookings, taking it to $1.1bn in GenAI sales and expanding its early lead in GenAI, now seen as the “core to clients reinvention”. 

Sweet emphasized that the company is “laser-focused on the needs of our clients and this focus is reflected in our bookings of $21.6bn, representing our second highest quarter on record.”

As a testament to its AI ambitions, Accenture has reached over 53,000 skilled data and AI practitioners against its goal of doubling data and AI workforce from 40,000 to 80,000 by the end of fiscal year 2026. 

Amid the turbulent climate, the company saw its communications, media and technology revenues slump eight percent to $2.7bn as financial services revenues also fell six percent year-on-year, missing Accenture’s estimates of $3bn.

In the meantime, GAAP operating income reached $2.05bn, compared to $1.94bn for the second quarter of fiscal 2023, and operating margin was 13.0 percent, compared to 12.3 percent for the second quarter last year. 

However, adjusted operating income fell to $2.16bn, compared to $2.19bn for the second quarter of fiscal 2023, as adjusted operating margin was 13.7 percent, compared to 13.8 percent for the second quarter last year.

Looking ahead, Accenture adjusted its future outlook with CFO KC McClure, saying that for the full fiscal 2024, the company expects “revenue to be in the range of one to three percent growth in local currency over fiscal 2023”, compared to two-five percent previously.

Over the quarter, the company announced recent partnerships with companies among Google Cloud, McDonald’s Corporation, Unilever, Riyadh Air, Union Bank of India and Commercial Bank of Dubai, as well as acquiring Singapore-based marketing company, Jixie.