Latest news with #JulieSweet
Business Insider
2 hours ago
- Business
- Business Insider
Accenture is giving consulting a new name as it doubles down on AI: 'reinvention services'
After more than 35 years in the business, Accenture is giving consulting a new name: "reinvention services." The global consulting firm reported its earnings on Friday, highlighting a generally positive performance for the third fiscal quarter of 2025. The firm reported revenue of $17.7 billion, an 8% increase from this time last year. While new bookings were down 6% compared to the third quarter in 2024, Accenture CEO Julie Sweet told CNBC on Friday that the firm was "really pleased" with its bookings and that demand for its services could be seen in its revenue. Sweet said on the earnings call that AI is the firm's strongest bet for creating new demand and that to maximize AI's potential, the firm is consolidating its strategy, consulting, song, technology, and operations services into a single unit known as "reinvention services," starting September 1. "What we're going to do now is make it even easier to bring those solutions, embed data and AI, so we can really scale across our client base and into new markets using our reinvention services," Sweet told CNBC. What consultants do sometimes needs to be explained, and "reinvention services" is no exception. In both her CNBC interview and the earnings call on Friday, Sweet shared several examples of the company's AI-powered reinvention work, which — following its reorganization — the firm will be able to execute more efficiently, she said. In one example, she said Accenture is working with Italian shipbuilding company Fincantieri to launch the first AI-powered ship in 2025. Sweet told CNBC that the ship will be able to "predict its maintenance, manage its energy use on its own, and talk to the dock" before it arrives at its destination. She said Accenture's work to modernize the manufacturing process for Bel, maker of Laughing Cow cheese, would also fall under this new department, as would its collaboration with Brazilian mining company Vale to expedite environmental licensing and permits. She also said the firm is creating AI-generated 3D avatars of physical products for coffee brands like Nescafé, Dolce Gusto, and Nespresso to reduce the time and cost of developing marketing campaigns, which would also fall under the new reinvention services department. Sweet told CNBC that AI can be a "tool" to help companies navigate the future, but to reap the benefits, it will also need to be "disruptive."
Time of India
7 hours ago
- Business
- Time of India
Accenture Q3 earnings: Revenue rises 8% to $17.7 billion on Gen-AI momentum; Gen-AI revenue tops $700 million
Accenture on Friday reported an 8% year-on-year rise in revenue to $17.7 billion for the March-May quarter of FY25, supported by growing demand for AI-related services. The Ireland-headquartered IT services firm, which follows --a September-August fiscal calendar, also raised the lower end of its full--year revenue growth guidance to 6-7% in local currency from 5-7% earlier. The company's Q3 performance included a modest positive foreign exchange impact of 0.5%, it said in a statement. Accenture's gross margin for the quarter stood at 32.9%, compared with 33.4% in the same period last year. Accenture Chair and CEO Julie Sweet said, 'We continue to deliver on our strategy to be our clients' reinvention partner of choice and lead in Gen-AI,' highlighting that Gen-AI bookings for the quarter hit $1.5 billion, with revenues exceeding $700 million. Year-to-date, Accenture has secured $4.1 billion in Gen-AI bookings and generated $1.8 billion in revenue. According to the company, new bookings in Q3 totalled $19.7 billion, down 6% in US dollar terms. Of this, $9.08 billion came from consulting services and $10.62 billion from managed services. The Americas remained the largest contributor with $8.97 billion in revenue, followed by EMEA at $6.23 billion and Asia-Pacific at $2.53 billion. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Sanitize & Smooth Clothes Fast with Philips Steamer Philips Garment Steamers Learn More Undo Accenture said its global workforce stood at 7.9 lakh at the end of the quarter. Its data and AI employee count has reached around 75,000, and the firm aims to expand that to 80,000 by FY26. The company ended the quarter with a total cash balance of $9.6 billion and expects Q4 FY25 revenues in the range of $17 billion to $17.6 billion. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
7 hours ago
- Business
- Time of India
Accenture says CEOs are hitting pause on consultants amid global uncertainty
Accenture reported another weak quarter, with new bookings falling by 6% to $19.7 billion for the three months ending 31 May. The announcement, despite beating earnings forecasts, sent its share price down nearly 8% in early Wall Street trading on Friday, as reported by Financial Times. As per the Financial Times report, Julie Sweet, Chief Executive of Accenture, pointed to worsening uncertainty, "We continue to see a significantly elevated level of uncertainty in the global economic and geopolitical environment as compared to calendar year 2024." Clients across industries are hesitating. Not over one problem, but many. "In every boardroom, in every industry, our clients are not facing a single challenge. They're facing everything at once: economic volatility, geopolitical complexity and [changing] customer behaviour," Sweet said. Shift to big-ticket digital projects The appetite for smaller, discretionary consulting contracts has slowed. But digital transformation, seen as vital by many companies, remains a priority. Live Events Sweet clarified the shift, 'They're not sitting on the sidelines. They're doing the biggest things that are going to make a difference.' Accenture is adapting by focusing on long-term tech and transformation deals — fewer in number but greater in value. US federal contracts cut under Trump-era cost push Accenture's work with the US federal government, which makes up roughly 8% of its global revenue, has also taken a hit. The Trump administration's budget tightening efforts have led to a string of contract cancellations and renegotiations. 'It's too early to be making assumptions' about next year, Sweet said, but confirmed that cancelled contracts and a slowdown in new work were already hurting projections. According to Financial Times, 28 contracts have been 'terminated for convenience' since January, including four major umbrella deals close to $1 billion in value. These were linked to the Departments of Health and Human Services, Interior, and the Treasury. Federal spending on Accenture services for the May quarter dropped to $643 million — just over half of what it was in the same period last year. Two straight quarters of missed bookings The trend hasn't gone unnoticed. Jefferies analyst Surinder Thind noted, 'The updated guidance implies growth will continue to slow down, which is worth calling out.' Accenture's leadership is trying to weather the storm with a strategic reshuffle. The company trimmed its global workforce from 801,000 to 791,000 during the latest quarter, citing voluntary departures. This comes on top of plans announced earlier this year to cut 19,000 jobs — 2.5% of its staff — over an 18-month period. Executive shake-up and restructure Accenture is also undergoing major leadership changes. Three senior executives — including Consulting CEO Jack Azagury and Technology CEO Karthik Narain — are stepping down. All five business units will now be consolidated under Manish Sharma, who currently leads operations in the Americas. This centralised structure, the company hopes, will streamline decision-making and cut overheads in an increasingly cost-conscious market. Fresh graduates left in limbo The hiring slowdown is now hitting new recruits. Several recent graduates have seen their onboarding deferred. Accenture spokesperson Rachel Frey confirmed, "We are adjusting start dates for some recent graduates based on our clients' and business needs." A UK-based graduate, who wished to remain anonymous, revealed she had accepted a consulting offer that was initially set to start in June. But the date was pushed first to October and later to early 2024. She declined the offer entirely rather than remain on hold. In an email reviewed by Bloomberg, a recruiter expressed regret over the delays, stating they were meant to ensure a smoother onboarding experience. To soften the blow, the company is offering additional signing bonuses to some affected candidates, according to a source familiar with the matter. Reddit users share frustrations On Reddit, where former and future Accenture employees often share updates, frustration is mounting. A college senior wrote: 'I've been strung along for months' and said they no longer know what to do. Another user, who previously interned at the firm, said they are now considering opportunities elsewhere. One comment reflected broader disillusionment: 'It's frustrating because I missed out on many companies and positions during the fall recruiting cycle.' The challenges at Accenture mirror a wider industry correction. Consulting giants like McKinsey & Company and Boston Consulting Group, along with Big Four firms such as KPMG and Deloitte, ramped up hiring during the pandemic. That boom is now turning into a bust. The sudden drop in demand has left firms overstaffed and under-booked. Ernst & Young recently scrapped its plan to split its audit and consulting businesses — a move many viewed as an admission of market slowdown. In March, Julie Sweet had outlined Accenture's strategy for weathering the fiscal year 2024 and beyond. It focuses on reducing costs without halting investments in people and innovation. But as layoffs, leadership changes, and delayed offers ripple through the firm, Accenture is clearly entering a phase of caution and consolidation. The question now is how long the consulting freeze will last — and whether clients will resume spending before the talent pipeline dries up completely.
CNBC
8 hours ago
- Business
- CNBC
Accenture CEO Julie Sweet: Really starting to see clients scale & embed generative AI in everything
Accenture CEO Julie Sweet joins CNBC's 'Squawk on the Street' to discuss the company's most recent quarter.
CTV News
9 hours ago
- Business
- CTV News
Accenture bookings drop eclipses upbeat revenue, unveils AI-focused revamp
A trader works on the floor of the New York Stock Exchange, Tuesday, March 11, 2025. (AP Photo/Richard Drew) Accenture reported a second straight drop in quarterly new bookings on Friday and unveiled an organizational revamp to bolster its AI consulting services, as a cutback in U.S. government spending and economic uncertainty pressure growth. The bookings decline overshadowed the consulting giant's better-than-expected quarterly revenue and an increase in its annual forecasts, sending its shares down per cent before the bell. Consulting and IT firms are under pressure as U.S. tariffs and accompanying economic uncertainty force companies to rethink their spending plans, while the Trump administration's cost-cutting efforts have led to contract cancellations and delays. Accenture said bookings - which represent future revenue secured through contracts - fell six per cent to US$19.70 billion in its fiscal third quarter, below the Visible Alpha estimate of US$21.54 billion and worse than the three per cent decline in the previous quarter. CEO Julie Sweet said 30 clients recorded quarterly bookings of greater than US$100 million, compared with 32 in the previous quarter. Generative AI bookings totaled about US$1.5 billion. Rival IBM also reported a small consulting revenue drop in April and said 15 of its U.S. government contracts worth about $100 million were shelved under the cost-cutting drive, while Indian IT firms including Infosys have warned of a tough year ahead. To navigate the uncertainty, Accenture plans to focus on AI consulting with the creation of a new business unit called reinvention services, which would combine its AI offerings and be led by Manish Sharma, the head of its Americas business. Sharma will be succeeded by chief operating officer John Walsh, while Americas COO Kate Hogan will take over as global COO. In the May quarter, Accenture posted revenue of US$17.7 billion, beating analysts' average estimate of US$17.30 billion, according to data compiled by LSEG. That growth was powered by higher spending by its clients in the financial services industry. Profit per share of US$3.49 also beat estimates of US$3.32. Accenture now expects annual revenue growth of six to seven per cent, compared with its earlier expectation of five to seven per cent. --- Reporting by Meghana Khare and Jaspreet Singh in Bengaluru; Editing by Shinjini Ganguli
