Accenture plc (NYSE: ACN) beat Wall Street's expectations for its fiscal fourth quarter on Thursday and forecast more growth in fiscal 2027. Investors bought heavily. Shares jumped about 17% before the market opened and were up more than 21% by mid-morning, making Accenture the S&P 500's top gainer.

Key Points

• Q4 EPS of $3.29 beat the $3.29 FactSet consensus of $3.18, up from $2.25 a year ago.
• Revenue rose 6% to $18.68 billion, ahead of the $18.03 billion estimate.
• New bookings grew 4% to $22.17 billion, including a record 141 client deals worth $100 million or more.
• Accenture guided FY2027 EPS to $14.39-$14.81 and revenue growth to 3%-6% in local currency.

Accenture (NYSE: ACN) Beats on Both Earnings and Revenue

For the quarter ended in August, Accenture (NYSE: ACN) earned $3.29 per share, up from $2.25 a year earlier and above the $3.18 analysts expected. Revenue rose 6% to $18.68 billion, beating the Street’s $18.03 billion forecast. In local currency, revenue grew 7%.

CEO Julie Sweet said the company “exceeded our fourth-quarter revenue guidance range” and wrapped up a year of broad-based growth.

Both Business Segments Grew

Each of Accenture’s two main businesses grew. Consulting revenue rose 6% to $9.28 billion, and managed services rose 7% to $9.40 billion.

Bookings were also strong. Accenture signed $22.17 billion in new business, made up of $9.4 billion in consulting and $12.77 billion in managed services. Sweet said the quarter’s 141 bookings of $100 million or more set a new high for the company.

Accenture (NYSE: ACN) Sets FY2027 Outlook

Accenture expects fiscal 2027 EPS of $14.39 to $14.81. That range would be 3% to 6% above fiscal 2026’s adjusted result of $13.97. FactSet’s consensus calls for $14.62 on a GAAP basis and $14.64 adjusted, both inside the company’s range.

The company also expects revenue to grow 3% to 6% in local currency, compared with 5% growth in fiscal 2026. It expects currency moves to have no net effect on the year.

For the first quarter, Accenture expects revenue of $18.95 billion to $19.6 billion, or 2% to 6% growth in local currency. Analysts expect $19.35 billion, near the middle of that range.

The Results Ease Fears That AI Will Replace Consultants

The results push back on the worry that AI will cut consultants out of their clients’ work. Earlier this week, UBS said Accenture was on track to more than double its bookings through partnerships with NVIDIA (NASDAQ: NVDA), OpenAI and Palantir (NASDAQ: PLTR). UBS concluded that AI is not pushing Accenture aside.

Other IT services stocks rose with Accenture on Thursday. Cognizant Technology Solutions (NASDAQ: CTSH) gained about 10%, and IBM (NYSE: IBM) added about 4%. Both companies’ recent quarters went differently. In July, IBM’s second-quarter results missed estimates, while Cognizant raised its full-year earnings outlook.