Accenture tops quarterly revenue estimates as AI services demand surges

Accenture beat Wall Street expectations for first-quarter revenue on Thursday, surpassing analyst estimates for both revenue and earnings.

Recent performance was largely fueled by booming demand for artificial intelligence-driven IT services, as the company advances its AI strategy to capture greater market share.

According to Reuters, the company’s aggressive push underscores a wider industry trend of adopting machine learning tools to automate complex tasks, as investors rely on these processes to drive growth.

This month Accenture collaborated with top AI start-ups Anthropic and OpenAI to train its employees on their latest models, ensuring the workforce is proficient enough to stay ahead of competitors.

The IT consulting company is dealing with fluctuating demand from public sector and government clients during a federal drive to mitigate spending and reallocation.

According to official reports, second-quarter revenue is expected to be between $17.3 billion and $18 billion, the midpoint of which is below analyst expectations.

Reported revenue of $18.74 billion for the first quarter was compared with the estimate of $18.52 billion.

In addition, the company reported earnings of $3.94 per share on an adjusted basis.