Despite revenue falling short of analysts' estimates, Accenture's net income exceeded expectations. The company's AI efforts proved to be a source of strength, with AI-related bookings reaching $900 million for the quarter, amounting to a total of $2 billion fiscal year-to-date.

The reported revenue for the third quarter stood at $16.47 billion, slightly lower than the $16.56 billion recorded during the same period in 2023, and below the expected $16.55 billion, as estimated by Visible Alpha analysts. However, net income attributable to Accenture beat estimates, with a profit of $1.93 billion, or $3.04 per share. Although lower than the previous year's figures of $2.01 billion and $3.15 per share, it surpassed the expected $1.91 billion and $3.01 per share forecasted by analysts.

Accenture's success in AI was evident with the company's generative AI bookings reaching a remarkable $900 million in the third quarter alone. These impressive figures contributed to Accenture's total AI-related bookings of $2 billion fiscal year-to-date.

Apart from AI, Accenture witnessed growth in overall new bookings, which amounted to $21.06 billion, a 22% increase compared to the previous year. Out of the total bookings, 44% came from consulting services, while the remaining 56% originated from Accenture's managed services division.

Highlighting the significance of their achievements, Accenture CEO Julie Sweet stated, "We also achieved two significant milestones this quarter - with $2 billion in Generative AI sales year-to-date and $500 million in revenue year-to-date - which demonstrate our early lead in this critical technology."

Additionally, Accenture declared a quarterly dividend of $1.29 per share, scheduled to be paid on August 15 to shareholders on record as of July 11. The company also repurchased $1.4 billion of its own stock during the quarter and has $3.3 billion remaining in its current buyback plan.

For the fourth quarter, Accenture projected revenue within a range of $16.05 billion to $16.65 billion, slightly below analyst estimates of $16.54 billion. The company adjusted its full-year guidance, anticipating revenue growth between 1.5% and 2.5%, narrowing the previous range of 1% to 3%. Moreover, Accenture lowered its full-year diluted earnings per share (EPS) guidance to a range of $11.29 to $11.44, down from the previous range of $11.41 to $11.64.

Accenture attributed these adjustments to an "uncertain macro environment" and observed that clients had reduced discretionary spending.

Following the release of the third-quarter results, Accenture shares surged by 6.2% to $302.90 as of 10:21 a.m. ET on Thursday. However, the shares still reflect a decline of over 13% year-to-date.