Accenture revenue forecast tops estimates on cloud, security services demand – Reuters

Accenture revenue forecast tops estimates on cloud, security services demand – Reuters

Accenture PLC logo is seen on a smartphone in front of displayed same logo in this illustration taken, December 1, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

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Dec 16 (Reuters) – IT consulting firm Accenture Plc (ACN.N) forecast better-than-expected second-quarter revenue on Thursday, as more clients seek its cloud and security services, sending its shares up more than 10% in premarket trade.

Client spending, which rebounded last fiscal year to pre-pandemic levels due to a shift to hybrid working models, has stayed strong with Accenture reporting robust bookings of $16.8 billion in the reported quarter, up 30% from a year earlier.

“This is the direct result of having executed for years a strategy to rotate our business to digital, cloud and security,” Accenture Chief Executive Officer Julie Sweet said.

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Analysts expect investments in these segments by the company, which hired 50,000 people during the quarter, to generate long-term benefits and help it compete better with peers Cognizant (CTSH.O) and Infosys (INFY.NS) for market share in a booming sector.

This strong industry-wide growth will likely be sustainable, as the pandemic helped create a multi-year IT spending cycle, Wedbush Securities analyst Moshe Katri said.

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Source: https://www.reuters.com/markets/europe/accenture-revenue-tops-estimates-cloud-security-services-demand-2021-12-16/

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