Accenture’s cloud services help it post a solid quarter

Cloud growth

The growing firm has glowed in a decent first half of the year, but it has warned that the second half could be tougher.

Global consulting and IT services firm Accenture has reported a solid overall second quarter, helped by its expansion in cloud services and other vertical technologies.

The company is listed on the New York Stock Exchange and headquartered in Ireland. It reported that revenues hit $11.1bn in the quarter, an increase of 7% over the same period last year. Diluted earnings per share were $1.91, a 10% increase from the second quarter last year.

Operating income was $1.49bn, which was a 7% jump on last time, and the operating margin increased to 13.4%. New bookings for the quarter were $14.2bn, with consulting bookings of $7.2bn and outsourcing bookings of $7bn.

Accenture’s total cash balance as at 29 February 2020 was $5.4bn, compared with $6.1bn on 31 August 2019, six month’s previously.

The company has acquired a number of businesses in vertical markets over the last 12 months.

Earlier this month, the firm’s Microsoft services subsdiary Avanade acquired Altius, a UK-based company specialising in cloud, data performance management and artificial intelligence (AI) services. With additional offices in the Netherlands and India, and a team of 300-plus cloud and data specialists, Altius brings to Avanade – and Accenture – industry expertise in solutions for the retail, travel and transport, infrastructure and public sectors.

And last autumn, Avanade acquired Germany’s Alnamic AG, a specialist in Microsoft Dynamics 365 and AX solutions for German industries. Alnamic focuses on technology systems for the manufacturing, IoT, wholesale and distribution sectors.

Also last year, Accenture acquired Cirruseo, a leading Google Cloud solutions provider in France. That acquisition strengthened Accenture’s expertise in Google Cloud in the French market and more broadly across Europe too.

Julie Sweet, Accenture’s chief executive officer, who was appointed last autumn, said: “The world is now facing a global health crisis and significant disruption in the global economy. We exited the first half of our fiscal year in a clear position of strength – delivering excellent results, gaining significant market share and continuing to successfully execute our growth strategy.

“As we move forward, we will focus on helping our clients navigate and succeed in this uncertain period and continue to invest in our business and our people for the long term.”