Accenture Revenue Growth Reflects Rising Demand For Digital Services

The company's net profits increased by almost 20% in the third quarter, with some 60% of revenues coming from digital, cloud and cyber security services.

Accenture revenue

Accenture has posted US$11.10 billion in revenues for the third quarter ending May 31, as the IT consultancy continues to reap rich dividends from its widening portfolio of digital offerings.

Nearly 60% of the company’s revenue came from digital, cloud and cyber security services, an indication that the demand for digital transformation services is growing steadily around the world.

Although the global economic climate is looking gloomy amid the intensifying trade war between the United States and China, Accenture has raised its earnings forecast from US$7.18 per share to US$7.28 per share.

Its net profit rose nearly 20% during the quarter, and on a call with analysts, the company’s executives expressed confidence in winning more service contracts.

Accenture’s client base has increased substantially in the US in recent months, but making new bookings has not been as easy elsewhere.

“Our substantial investments in strategic, high growth areas are clearly differentiating us and driving growth ahead of the market,” the company’s interim CEO David Rowland said.

Over the past few years, Accenture has created a large portfolio of digital assets by digital startups such as Fjord, Karmarama, The Monkeys, and SinnerSchrader.

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In the first half of fiscal 2019, Accenture acquired 15 businesses for a combined US$515 million, and this spending spree will continue, with the company having set aside US$1.5 billion for acquisitions this year.

Accenture states on its website that its future acquisitions will focus on bolstering its offerings in cloud, digital and cyber security.

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