IT services and consulting firm Accenture reported better-than-expected Q2 numbers by beating its own guidance, it also revised its annual guidance upwards to 24 per cent to 26 per cent from the earlier 19 per cent to 22 per cent.
Accenture also cautioned the Street that if the Russia-Ukraine conflict further escalates, it will have adverse effect on the company’s results.
“The invasion of Ukraine by Russia and the sanctions and other measures being imposed in response to this conflict have increased the level of economic and political uncertainty. Accenture’s third-quarter and full-year 2022 business outlook does not include assumptions for a significant escalation or expansion of economic disruption or the conflict’s current scope, which could have a material adverse effect on the company’s results of operations,” said the company in a results release.
Accenture’s results continue to show that the momentum for digital transformation and shift to cloud services is growing strong. The double digit growth and an upward revised guidance augurs well for the Indian IT services industry.
Julie Sweet, Accenture’s Chair & CEO, said: “Our outstanding second-quarter financial performance demonstrates continued strong, broad-based demand across all our markets, services and industries. Our core strength is the diversity of our business that enables us to digitally transform across the enterprise through the depth and breadth of our services.”
She further added, “At the same time, our clients also have access to talent at scale through our nearly 700,000 incredible people who deliver for them every day.”
Revenues for the second quarter for fiscal 2022 came in at $15.05 billion an increase of 24 per cent in US dollars on a year on year basis. Accenture had reported revenue of $12.09 billion in Q2 of fiscal 2021. Revenues for the Q2 were approximately $300 million above the top end of the company’s guided range of $14.3 billion to $14.75 billion.
Consulting revenues for the quarter were $8.32 billion, an increase of 29% in US dollars compared with the second quarter of fiscal 2021. Outsourcing revenues were $6.72 billion, an increase of 19 per cent in US dollars YoY. Net income for the quarter was $1.66 billion, compared with $1.46 billion for the second quarter last year.
New bookings for the quarter were a record $19.6 billion, with record bookings in both consulting and outsourcing of $10.9 billion and $8.7 billion, respectively.
Growth was across sectors and regions, both the segments registered double digit growth. North America grew by 26 per cent, Europe was up 31 per cent and growth markets were up 3o per cent.
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