Accenture Stock Soars 22% as Earnings Beat, Record Bookings and Upbeat 2027 Outlook Ease AI Disruption Fears

NEW YORK — Shares of Accenture surged more than 22% on Thursday after the consulting and technology services giant reported fiscal fourth-quarter results that topped Wall Street's expectations and issued an outlook for the year ahead that eased investor concerns about the impact of artificial intelligence on its business.

The stock jumped $41.32, or 22.53%, to $224.69 as of 10:19 a.m. Eastern time on the New York Stock Exchange, making it one of the biggest gainers among large U.S. companies. The rally built on a sharp move in premarket trading, where the shares had climbed as much as 19%.

The surge marks a dramatic turnaround for a stock that had struggled for much of the year amid worries about slowing demand and the threat that AI tools could disrupt traditional consulting and IT services work.

Earnings and revenue beat estimates

For the fourth quarter of its fiscal year, which ended Aug. 31, Accenture reported adjusted earnings of $3.29 per share, above analysts' average estimate of about $3.18.

Revenue rose 6% in U.S. dollars and 7% in local currency to $18.70 billion, well ahead of the $18.03 billion analysts had expected and above the top end of the company's own guidance range of $17.75 billion to $18.4 billion.

Operating income reached $2.9 billion, for an operating margin of 15.3%, up 0.2 percentage point from the adjusted margin in the same period a year earlier.

Chair and Chief Executive Julie Sweet said the company exceeded its fourth-quarter revenue guidance and ended the year with broad-based growth.

Strong bookings

Accenture reported new bookings of $22.2 billion for the quarter, an increase of 4% in U.S. dollars. That produced a book-to-bill ratio of 1.2, meaning the company signed more new business than it recognized in revenue during the quarter, a signal of future growth.

The company also reported record bookings from large, multimillion-dollar client deals, according to Benzinga, a sign that major companies are continuing to commit to big transformation projects.

Upbeat outlook for fiscal 2027

Investors cheered Accenture's forecast for fiscal 2027, which came in above Wall Street's expectations.

The company expects revenue growth of 3% to 6% in local currency, with revenue projected between $76.43 billion and $78.65 billion. Analysts had expected about $76.41 billion.

Accenture forecast earnings per share of $14.39 to $14.81, representing growth of 3% to 6% over adjusted fiscal 2026 results. The midpoint is roughly in line with analysts' estimate of $14.63.

The company expects its operating margin to reach 15.9% to 16.1%, an expansion of 0.1 to 0.3 percentage point.

For the first quarter of fiscal 2027, Accenture projected revenue of $18.95 billion to $19.6 billion, representing growth of 2% to 6% in local currency.

Returning cash to shareholders

Accenture also continued to reward investors. During fiscal 2026, the company returned $11.5 billion to shareholders, up 38% from the prior year, including $7.5 billion in share repurchases.

In the fourth quarter alone, it repurchased or redeemed 17.6 million shares for $2.3 billion. The company said it expects to return at least $9.5 billion to shareholders in fiscal 2027.

A turnaround for a beaten-down stock

Thursday's rally comes after a difficult stretch for Accenture shares. The stock had fallen for much of the year as investors worried about weaker growth and the potential for generative AI to reduce demand for the labor-intensive consulting and IT outsourcing services that make up much of the company's business.

After its fiscal third-quarter results in June, Accenture lowered its full-year revenue growth outlook to 3% to 4% in local currency, from a previous range of 3% to 5%, adding to concerns about the business.

The latest results suggest demand has held up better than feared. Accenture has positioned itself as a leading partner helping companies adopt AI, investing heavily in training and acquisitions to capture business from clients seeking to deploy the technology.

Lift for the sector

Accenture's strong results also lifted shares of other IT services firms. Cognizant Technology Solutions rose about 7% in premarket trading following the report, as investors bet the broader industry could benefit from similar trends.

The gains came even as the broader stock market faced pressure from rising Treasury yields, which climbed to their highest levels in more than two decades on Thursday.

About Accenture

Based in Dublin, Accenture is one of the world's largest professional services companies, offering consulting, technology, outsourcing and digital transformation services to businesses and governments. The company employs hundreds of thousands of people worldwide.

Investors will be watching whether Accenture can sustain its momentum in the first quarter of fiscal 2027 and whether demand for AI-related projects continues to offset pressure on traditional services. The company's ability to convert its strong bookings into revenue growth will be key to whether Thursday's rally holds.