Accenture shares jump 16% as AI‑driven Q4 earnings beat forecasts

What happened

Accenture announced Thursday that its fiscal fourth‑quarter earnings per share came in at $3.29, while revenue reached $18.68 billion. Both numbers beat the LSEG consensus of $3.18 a share and $18.03 billion in revenue. The market reacted sharply: the stock surged as much as 22% during the session and settled about 16% higher by the close.

The company also posted a full‑year adjusted EPS of $13.97, an 8% year‑on‑year rise, and revenue of $74.2 billion, up 6% from the prior year. In the same release, Accenture highlighted a record $85 billion in new‑business bookings that will flow into fiscal 2027, and a 5% dividend increase to $1.71 per share, payable on Nov 13.

Why AI matters

CEO Julie Sweet told CNBC’s “Squawk on the Street” that artificial‑intelligence services are a “key growth driver” for the firm. She said Accenture is “building partnerships in data‑center and capital‑infrastructure AI sectors” and positioning itself as “the bridge between AI and outcomes.”

Analyst David Grossman of Stifel, who upgraded his price target to $242 from $225, pointed to “accelerating demand from AI‑related partners” and “broad‑based outperformance” that includes smaller discretionary deals and federal‑government work. The analyst added that Accenture remains the only professional‑services firm at scale that can “consistently re‑skill around different technology and business cycles.”

Despite the rally, the stock is still down more than 18% year‑to‑date, a dip that reflects lingering concerns that AI could disrupt core consulting lines. Sweet countered that the firm’s focus is on “business outcomes, not AI for AI’s sake,” and that AI is a tool to help clients cut costs and grow, regardless of broader safety debates.

What comes next

Looking ahead, Accenture reaffirmed its fiscal‑2027 outlook of 3‑6% year‑over‑year growth in both revenue and adjusted EPS. The company also flagged a record number of “big‑ticket” client bookings—deals valued at $100 million or more—suggesting a pipeline that can sustain the AI‑led momentum.

Stifel’s upgraded target and the strong quarterly performance could encourage other investors to re‑enter a stock that has been penalised by AI‑risk headlines. If the firm’s AI‑centric strategy continues to translate into large‑scale contracts, the current discount to peers may narrow quickly.

For now, Accenture’s earnings beat and the accompanying AI narrative appear to have quieted market anxieties, at least in the short term, and set the stage for a potentially record‑setting year.