Accenture (ACN) shares soared 21% on Thursday after the consulting and technology giant delivered a strong quarterly earnings beat and issued an upbeat fiscal 2027 revenue forecast.
The results directly addressed one of the biggest concerns weighing on the stock this year, namely that generative AI would erode demand for traditional consulting and IT services.
Heading into the report, analysts had expected Accenture to post a profit of $3.19 per share on just over $18 billion in quarterly sales.
The company significantly exceeded those estimates, earning $3.29 per share on $18.7 billion in revenue for the quarter.
Revenue grew 6% year over year, both for the quarter and the full fiscal year, with total fiscal 2026 revenue reaching $74.2 billion.
Margins also expanded meaningfully, with Accenture reporting a 15.3% gross margin for the fourth quarter, up 370 basis points from the prior year period.
Profit growth was especially striking, with Q4 earnings climbing 46% while full-year profit rose 12% to $13.56 per share.
The company generated $2.8 billion in free cash flow during the quarter and $11.6 billion across the full fiscal year, underlining the strength of its underlying business.
Accenture also set new booking records, reaching an all-time high of 141 client bookings of $100 million or more in the fourth quarter alone, with full-year bookings hitting $84.5 billion.
The company returned a record $11.5 billion to shareholders during the year, representing a 38% increase over the prior year.
The booking milestone carries particular weight given the difficult year Accenture shares endured, with the stock entering Thursday down roughly a third year-to-date and trading near its 52-week low of $174.
Investor anxiety had built steadily around the idea that AI-driven automation would shrink demand for hourly consulting and staffing work, the bread and butter of Accenture’s traditional business model.
That concern was serious enough that Guggenheim downgraded ACN stock to Neutral last month, citing the very same AI displacement risks.
TD Cowen analyst Bryan Bergin highlighted the quarter’s solid close as a notable reversal, observing that the bounceback amid a muted macroeconomic backdrop was poised to drive a strong market reaction.
The optimism quickly spread across the broader IT services sector, with global software and consulting stocks rallying sharply in sympathy with Accenture’s strong report.
Globant SA surged 10%, Capgemini SE climbed 9%, and Cognizant Technology Solutions Corp. along with Infosys Ltd. both advanced 8% on the day.
EPAM Systems Inc. jumped 7% while International Business Machines Corp. added 5%, reflecting broad relief across an industry that had been under pressure from AI uncertainty.
Thursday’s results suggest that for now, at least, demand for large-scale technology transformation work remains robust, even as AI reshapes the tools consultants use to deliver it.
