Accenture (ACN) posted solid fiscal Q1 financial results as artificial intelligence continues to be in focus while its developing AI partnership ecosystem is expected to prove positive for the company's long-term growth, RBC Capital Markets said in a note emailed Friday.
The company delivered fiscal Q1 adjusted earnings and revenue that surpassed consensus and RBC estimates, with overall bookings up 10% from a year ago and advanced AI bookings growing about 22% quarter over quarter to $2.2 billion, RBC analysts said.
The growth potential for AI penetration in Accenture's customer list remains huge, with just 1,300 of its 9,000 clients currently adopting advanced AI, which the company defines as including generative AI, agentic AI, and physical AI but not including data, according to the note.
Analysts said they were encouraged by the roughly 7% year-over-year increase in revenue generated per full-time employee, and the company's largest 10 partners contribute 60% of total revenue. Fixed-price contracts also make up 60% of the revenue, up 10 percentage points over the last three years, analysts said.
RBC raised its price target to $295 from $285, and kept the stock's rating at outperform.
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