Accenture Reports Solid Second Quarter; CEO To Step Down - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
IT Leadership // IT Strategy

Accenture Reports Solid Second Quarter; CEO To Step Down

The IT-services firm says 2Q revenue rose 15% from the year-ago quarter, while net income was up 4%.

Accenture Ltd. said Tuesday that revenue for its second quarter, ended Feb. 29, rose 15% year-over-year to $3.68 billion on the strength of increased demand for outsourcing services. The IT-services vendor also said top executive Joe Forehand will relinquish his CEO title on Sept. 1, although the 55-year-old will remain as chairman. Accenture said it expects to name a new CEO, most likely from within, by mid-April. An Accenture spokesman said Forehand made the decision to leave because "he felt it was the right time."

Accenture's second-quarter net income rose 4% year-over-year, to $123.1 billion from $118.7 billion. But earnings per share fell to 22 cents from 25 cents as the number of total shares outstanding increased. New bookings in the second quarter increased 61% to $7.65 billion.

Most of Accenture's growth is coming from its sales of outsourcing services, which are benefiting from the trend among big businesses to send back-office and routine IT work abroad to low-wage countries such as India. Accenture maintains application development centers in Bangalore and Mumbai. Revenue from outsourcing grew 54% year-over-year to $1.2 billion during the quarter. Consulting, still the firm's biggest revenue generator, grew just 1.5% to $2.03 billion.

Accenture said it expects sales during the current quarter to come in between $3.4 billion and $3.55 billion. In 2003, third-quarter sales were $3.42 billion.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Slideshows
10 Trends Accelerating Edge Computing
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/8/2020
Commentary
Is Cloud Migration a Path to Carbon Footprint Reduction?
Joao-Pierre S. Ruth, Senior Writer,  10/5/2020
News
IT Spending, Priorities, Projects: What's Ahead in 2021
Jessica Davis, Senior Editor, Enterprise Apps,  10/2/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
[Special Report] Edge Computing: An IT Platform for the New Enterprise
Edge computing is poised to make a major splash within the next generation of corporate IT architectures. Here's what you need to know!
Slideshows
Flash Poll