Why is Accenture defying the tech sell off today?

Accenture shares rose 5.7% on Thursday, defying a broader tech-sector selloff, after the consulting giant reported stronger-than-expected second-quarter results driven by accelerating demand for artificial intelligence and cloud services.

The company posted adjusted earnings of $2.93 per share for the quarter, beating analyst estimates of $2.84 and rising from $2.82 a year earlier.

Revenue climbed about 8% year over year to roughly $18 billion, also ahead of expectations of $17.84 billion.

Bookings increased to $22.1 billion, reflecting continued demand for large-scale transformation projects.

The results come at a time when software and consulting stocks have faced pressure amid concerns that AI could disrupt traditional business models.

AI-driven demand boosts growth and bookings

Accenture’s growth was largely driven by strong demand from companies investing in AI and digital transformation.

“We're accelerating our critical work with clients to scale advanced AI across their enterprise, and we're seeing strong AI-driven growth,” Chief Executive Julie Sweet said.

The company said it expects to more than double its work with “emerging AI and data ecosystem partners” such as Anthropic, OpenAI and Palantir, underscoring its strategy to position itself at the center of enterprise AI adoption.

Global consulting firms, including Accenture and Cognizant, are benefiting from rising demand for external technology expertise as businesses seek to automate processes and modernize operations.

In Accenture’s case, managed services—now accounting for 51% of revenue—continued to grow faster than consulting, reflecting a shift toward recurring, outcome-based engagements.

Operational efficiency also improved, with utilization rising to 93% and operating margins expanding to 13.8% from 13.5% a year earlier.

Strong bookings highlight sustained client demand

Accenture’s bookings reached $22.1 billion in the quarter, signaling robust pipeline visibility despite macroeconomic uncertainty.

“Record bookings show that Accenture is being sought out by companies to help them navigate the complex new world that puts AI at its heart but there are huge question marks about how that spend might ebb and flow over the coming year," said Danni Hewson, head of financial analysis at AJ Bell in a Reuters report.

The company’s performance was supported by strength in Asia Pacific and continued demand for large-scale transformation initiatives, particularly those tied to AI readiness.

At the same time, Accenture is investing heavily to sustain growth, with CEO Julie Sweet indicating that acquisitions of AI-focused assets and fast-growing firms will account for about $5 billion in spending this year.

The firm is also embedding AI more deeply into its operations, making employee contributions to AI-driven work part of performance evaluations.

Guidance reflects cautious optimism amid macro risks

Despite strong quarterly results, Accenture’s outlook reflects a degree of caution.

The company raised the lower end of its fiscal-year revenue growth forecast to 3% to 5% in local currency, up from a prior range of 2% to 5%, and narrowed its adjusted earnings guidance to $13.65 to $13.90 per share.

However, the updated forecast still fell short of some analyst expectations, with consensus estimates pointing to stronger growth.

Accenture also flagged potential headwinds, including a projected 1% revenue impact in fiscal 2026 from reduced federal spending.

The company said its guidance reflects its best assessment of the potential effects of the Middle East conflict on global demand.