Accenture shares surge as consulting giant shrugs off worst of AI fears

Accenture, the consulting giant, experienced a significant surge in its shares on Thursday as the company surpassed its own revenue targets and dismissed concerns about the impact of artificial intelligence (AI) on its business. The New York-listed firm reported a six percent increase in its fourth-quarter revenues to $18.7 billion, surpassing its target range of $17.7 billion to $18.4 billion.

Analysts had anticipated the company to achieve around $18 billion for the same period. Moreover, adjusted earnings per share for the 2026 financial year grew by 8 percent to $13.97, compared to $12.93 in the previous year's financial year. The company's shares jumped by over 22 percent in early trading, marking its biggest one-day gain on record.

This surge came after a year in which the company's value had experienced a substantial drop due to fears over AI's potential threat to the consulting industry. Julie Sweet, the chair and chief executive of Accenture, stated that the company had achieved "another year of broad-based growth across our business." The company anticipates a full-year revenue growth of between three and six percent for the 2027 financial year and plans to return at least $9.5 billion in cash to its shareholders.

Over the past year, Accenture's stock has declined by approximately 25 percent, partly due to weaker quarterly results, decreasing returns on invested capital, and growing concerns about the impact of AI on the consultancy sector. Analysts at Morningstar have downgraded firms such as Accenture and Capgemini due to uncertainties surrounding AI's effect on their future sales pipelines.

Michael Field, chief equity strategist at Morningstar, previously told City AM that professional services firms are currently facing a challenging situation due to the looming "AI reckoning" over their future prospects.