Shares of Accenture (ACN -1.18%), which provides business and technology strategies to companies, jumped this morning after the company reported better-than-expected results for the fiscal first quarter of 2025.
The company beat top- and bottom-line consensus estimates, spurring Accenture's management to raise the company's full-year revenue guidance. That sent the company's share price up 6.6% as of 11:46 am ET.
An impressive quarter
Accenture's revenue increased 9% in the first quarter (ending Nov. 30) to $17.7 billion, which was enough to beat Wall Street's consensus estimate of $17.1 billion. The company's generally accepted accounting principles (GAAP) earnings of $3.59 also easily outpaced analysts' consensus estimate of $3.42 in the quarter.
Accenture CEO Julie Sweet said in a press release, "We delivered broad-based revenue growth across both consulting and managed services, and across each market and industry group, gaining market share."
Two important figures from the quarter were the company's new bookings reaching $18.7 billion, including 30 client bookings of more than $100 million, and the company's $1.2 billion in generative artificial intelligence (AI) bookings. Investors have been keeping a close eye on the Accenture's expanding AI services, which can help companies with things like analytics, chatbots, and customer support.
A rosy outlook
Accenture raised its full-year 2025 revenue outlook following its strong quarterly results, with management estimating revenue growth to be in the range of 4% to 7%, up from its previous estimated range of 3% to 6%.
With growth in the company's AI bookings, top- and bottom-line results ahead of estimates, and the company raising its revenue outlook for the year, it's no surprise to see Accenture's stock gaining ground this morning.
Accenture's shares have a forward price-to-earnings ratio of 27.2 right now, which is slightly more expensive than the S&P 500's forward P/E ratio of 24.1. But the company's latest quarterly results indicate that Accenture's stock could have more room to run as the company continues to grow its AI enterprise services.
