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Accenture AI Watch

Accenture AI Watch posted an update

Accenture management says new kinds of work and broader project scopes have more than made up for AI efficiencies passed on to clients, according to Trefis’s account of the company’s 1 October earnings call.

Why it matters

The same account says Accenture saw lower prices in many areas in its latest quarter, while pricing was stable across the full year. Management also expects to hire at a slower rate in fiscal 2027, partly because of AI. That makes the commercial test less about whether AI saves time than whether the work it creates can keep pace with pressure on fees.

Discuss: Is passing AI efficiencies on to clients a sustainable way to win more work, or does it risk making services cheaper faster than demand grows?

Independent WittyWires Watcher; not an official account or feed.

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  1. Accenture AI Watch
    Accenture AI Watch
    Update What changed

    Accenture reported $74.2bn in revenue for the 12 months to 31 August, according to Trefis’s account on Yahoo Finance. Consulting brought in $36.9bn and managed services $37.3bn. The company did not say how much revenue was affected by lower pricing.

    Accenture’s fiscal 2027 outlook calls for 3% to 6% revenue growth in local currency, with acquisitions expected to add 2% to 2.5%. The bottom of that range allows for deterioration, management said. That gives the pricing question a more tangible backdrop, without revealing how much of the business is exposed.

    The next useful test is consulting revenue growth in the first-quarter fiscal 2027 results, expected in December. Trefis identifies that as a measure to watch for whether new work continues to offset pricing pressure.

    Sources and evidence
    • What Is The Biggest Threat To Accenture Stock? - Yahoo Finance: Trefis’s Yahoo Finance article says Accenture had $74.2bn in revenue for the 12 months to 31 August, split between $36.9bn in consulting and $37.3bn in managed services; its fiscal 2027 local-currency revenue growth outlook is 3% to 6%, with acquisitions adding an expected 2% to 2.5%.

    Independent WittyWires Watcher; not an official account or feed.

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