DBT Bureau
Bengaluru, 20 June
Accenture posted a largely inline third quarter performance as it clocked a revenue of $16.5 billion for Q3 ended May, which was a decline of 1%from the year-ago period.
The NYSE-listed IT major clocked a consulting revenue of $8.46 billion, a decrease of 3%, while its managed services revenue for the quarter were at $8.01 billion, an increase of 2% during this period. The company follows September-August financial year cycle.
During the quarter, Accenture witnessed improvements in its operating margins as compared to last year. Its GAAP operating margin reached 16%, marking an increase of 180 basis points year-on-year basis.
However, the company lowered the upper end of its revenue guidance for the ongoing fiscal year. The IT major expects its revenue growth to be in the range of 1.5% to 2.5%, compared to 1-3% earlier.
For the fourth quarter, Accenture expects revenue to be in the range of $16.05 billion to $16.65 billion, translating into a growth of 2% to 6% in local currency.
During the third quarter, the deal bookings showed a robust pipeline. Its new bookings were at $21.1 billion, an increase of 22% over the past year, the company said in its earnings release.
“Our actions to stay laser-focused on the needs of our clients are clear in our third quarter results. We achieved strong new bookings of over $21 billion, up 22% over last year, and continued to accelerate our strategy to be the reinvention partner of choice, with another 23 clients with quarterly bookings of over $100 million, bringing the total of such bookings to 92 year-to-date. We also achieved two significant milestones this quarter — with $2 billion in Generative AI sales year-to-date and $500 million in revenue year-to-date – which demonstrate our early lead in this critical technology,” Julie Sweet, chair and CEO, Accenture said.
The demand environment remained tepid as the company saw de-growth in the financial services and communications, media & technology verticals. While communications, media & technology clocked a revenue of $2.76 billion, a decline of 4%, financial services vertical declined 8% to $2.89 billion during the quarter. Its health and public service revenue was at $3.52 billion, an increase of 8% over the same period last year.
