Accenture Plc beat Wall Street estimates for first-quarter revenue on Thursday, as the consulting and outsourcing services provider reaped rewards from investments in digital and cloud services. Much of Accenture's recent growth has been driven by digital and cloud services, which include everything from managing clients' social media marketing strategies to helping them move to the cloud.
Revenue from digital, cloud and security-related services, which the company calls it "the New", accounted for more than 60 percent of its total revenue.
Accenture has spent billions over the last three years on multiple acquisitions to strengthen the business and compete with Cognizant Technology Solutions Corp and IBM Corp . It made at least five smaller acquisitions in the last three months alone.
In October, rival IBM said it would buy US software company Red Hat Inc for $34 billion, including debt, to diversify its technology hardware and consulting business. Accenture forecast current-quarter revenue between $10.10 billion and $10.40 billion. Its midpoint was below the average analysts' estimate of $10.32 billion, according to IBES data from Refinitiv.
Net income attributable to the consulting and outsourcing services provider rose to $1.28 billion, or $1.96 per share, in the first quarter ended November 30, from $1.12 billion, or $1.79 per share, a year earlier. Its profit beat the analysts' estimate of $1.86 per share. Net revenue rose 7.4 percent to $10.61 billion, beating estimates of $10.52 billion.
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