Accenture shares surge over 22% after Q4 earnings beat, driven by AI growth

Shares of Accenture surged Thursday after the company's fiscal fourth-quarter results beat estimates.

The consulting giant reported earnings per share of $3.29 on revenue of $18.68 billion. That exceeded LSEG consensus estimates of $3.18 earnings per share and revenue of $18.03 billion.

The stock surged more than 22% at one point, which put it on pace for its biggest one-day gain ever, FactSet data shows.

In an exclusive interview on CNBC's "Squawk on the Street," Accenture CEO Julie Sweet said AI has served as a key growth driver for the business as it accumulates partners in key AI sectors such as data centers and capital infrastructure.

"We've just finished the year with $85 billion of new business going into next year, and that is driven by our growth strategy to focus on big transformational deals and making sure we're the winner in AI and data," Sweet told CNBC.

"We're investing now to not only be the partner for companies who are going to scale across the enterprise, but also to be relevant to all parts of things that have to enable the use of AI."

Full year adjusted earnings for fiscal 2026 amounted to $13.97 per share, up 8% year on year, while revenue totaled $74.2 billion, marking a 6% increase.

"These results reflect the continued trust our clients place in us to help them reinvent and create value, the high level of innovation we bring every day and the extraordinary commitment of our Reinventors to our clients' success," Sweet said in a press release Thursday, noting broad-based growth across the business and record cash returned to shareholders.

The company also posted a record in big-ticket client bookings, those valuing $100 million or more. On top of that, Accenture increased its quarterly dividend by 5% to $1.71 per share, which will be payable Nov. 13.

For its fiscal year 2027 outlook, Accenture sees 3%-6% year-over-year growth in both revenue and adjusted earnings per share.

Following the beat, Stifel reiterated their buy rating of the professional services company and increased the stock's price target to $242 per share up from $225. Analyst David M. Grossman pointed to broad-based outperformance in the stock due to smaller discretionary deals as well as activity in the federal government sector and accelerating demand from AI-related partners, showcasing stability in the company's business model.

"In our view, ACN is the only professional services provider at scale that has demonstrated an ability to consistently re-skill around different technology and business cycles," Grossman wrote in the note.

Despite Thursday's massive gain, the stock remains down more than 18% year to date due to worries that artificial intelligence will disrupt key business segments.

Sweet told CNBC that amid disruption fears and a growing focus on AI safety, Accenture has focused on serving as a "bridge between AI and outcomes."

"Our big focus is always around business outcomes, and AI is a way to get better business outcomes, and that is what clients are focused on. It's not about AI in and of itself, it's about, how do you grow, how do you cut costs, how do you thrive no matter what the environment is," Sweet said.