Accenture (NYSE:ACN) delivered a resilient Q2, beating expectations on both the top and bottom lines despite a difficult macro backdrop. Revenue reached $18.04 billion against the $17.8 billion consensus, while adjusted EPS came in at $2.93, surpassing the expected $2.85. Gross margin improved to 30.3% and free cash flow was robust at $3.7 billion.
The primary highlight was record new bookings of $22.1 billion, a 6% increase in U.S. dollars. While the company is “taking share” and seeing strong demand for large scale transformation, with a record 41 clients booking over $100 million, the Consulting segment’s 3% year over year growth remains a point of scrutiny for those looking for a sharper post-AI acceleration.
As has become common, the call was heavy on “visionary” AI commentary, highlighting the milestone of 85,000 AI professionals and a $5 billion M&A target. CEO Julie Sweet remained confident in the long term “reinvention” narrative, but the high level nature of the answers and occasionally side-stepping analyst questions regarding near term organic growth and the disconnect between record bookings and modest revenue guidance should be noted.
For more details, key highlights, and commentary, check out the high-level earnings summary.
