Accenture forecasts Q2 revenue below estimates on cautious IT spending

Tata Consultancy Services, India’s No.1 IT services exporter, reported weaker-than-expected quarterly results in October, while Infosys cut the upper end of its annual revenue forecast, as clients were still hesitant to spend on discretionary projects. Both companies are Accenture's competitors in the outsourcing business.

Accenture's shares fell 1.7% in trading before the bell. They have gained over 28% so far this year, outperforming the benchmark S&P 500 index.

The firm reiterated its fiscal 2024 forecasts for revenue growth and profit.

It said its new generative artificial intelligence bookings were worth over $450 million as companies remain experimental with their spending on the technology.

Accenture expects revenue in the range of $15.40 billion to $16 billion. Analysts polled by LSEG had forecast revenue of $16.29 billion.

Its revenue in the first quarter ended November 30 rose 3%, to $16.22 billion.