Accenture raises full-year revenue forecast on AI services demand

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Accenture raised the lower end of its annual revenue forecast on Thursday, betting on growing demand for its services to help clients integrate AI-powered tools into their operations, sending the company's shares up 3 per cent before the bell. 

Strong demand for large-scale projects in cloud migration, artificial intelligence-led digital transformation and data security has helped companies such as Accenture. 

Accenture has secured several large projects and partnered with banks, telecommunication firms and sports firms among others.

The company now expects annual revenue to grow between 5 per cent and 7 per cent, compared with its prior forecast of 4 per cent to 7 per cent. Analysts had expected revenue growth of 5.7 per cent, according to data compiled by LSEG. 

In fiscal 2024, Accenture invested about $6.6 billion in acquisitions to strengthen its position in the IT industry, improve management of large-scale projects and bolster AI capabilities. 

The company's GenAI business recorded new bookings of $1.4 billion in the second quarter. Accenture reported second-quarter revenue of $16.66 billion, compared with the average analyst estimate of $16.62 billion, according to data compiled by LSEG.