Accenture, an IT consulting firm, anticipated better-than-expected second-quarter revenue on Thursday, following a 27 % increase in first-quarter revenue, riding a digital transformation wave with more clients requesting its cloud and security services.
Client spending has been high, having recovered to pre-pandemic levels last fiscal year thanks to a shift to hybrid working arrangements, which increased Accenture's revenue by 14%.
Accenture's stock has climbed about 42% this year, outpacing the S&P 500 Index, mainly to increasing investments in digitization and cloud usage.
Accenture has been aggressively investing in cloud, digital, and security services to capitalize on the digitization trend, which analysts believe bodes well for the firm as it fights for market share in a rising sector with Cognizant and Infosys.
According to Refinitiv IBES data, revenue for the quarter ended Nov. 30 was $14.97 billion, compared to analysts' average forecast of $14.19 billion.
Accenture forecasts sales in the current quarter to range between $14.30 billion and $14.75 billion, compared to an average expectation of $14.09 billion among analysts.