Accenture beats estimates, hikes forecast as digital investments pay off
Much of its recent growth has been driven by digital and cloud services, which include managing clients' social media marketing strategies
Bengaluru — Accenture beat estimates for quarterly earnings and raised its full-year profit forecast on Thursday as it continues to benefit from investments in digital and cloud services, sending its shares 4% higher. Much of Accenture’s recent growth has been driven by digital and cloud services, which include everything from managing clients’ social media marketing strategies to helping them migrate to the cloud. The services made up more than 60% of its total revenue in the second quarter. Wedbush analyst Moshe Katri said Accenture’s beat and raise reflect a very bullish spending environment for the IT services sector. “This is driven by large digital transformation programs at enterprises as well as by a catch-up in spending on legacy, rationalization projects.” Accenture competes with Cognizant as well as with major Indian IT companies such as Tata Consultancy Services and Wipro. Accenture, which has spent billions of dollars over the recent years on acquisitions to strengthen ...
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