Accenture Plc raised its full-year profit forecast on Thursday, after reporting better-than-expected third-quarter results, as the provider of consulting and outsourcing services continues to benefit from its digital and cloud services investments.
The company has shifted its focus to digital and cloud services, which include everything from managing clients' social media marketing strategies to helping them move to the cloud, as the IT services industry struggles with falling margins.
Revenue from digital, cloud and security-related services, which Accenture calls "the New", contributed more than 60% of its total revenue in the third quarter.
Accenture raised its full-year earnings forecast to between $7.28 and $7.35 per share, from a previous range of $7.18 to $7.32.
Net income attributable to the company rose to $1.25 billion, or $1.93 per share, in the third quarter ended May 31, from $1.04 billion, or $1.60 per share, a year earlier.
Analysts on average had expected a profit of $1.89 per share.
Total operating costs rose 3.5% in the quarter.
Net revenue rose to $11.10 billion from $10.69 billion, ahead of analysts' average estimates of $11.04 billion, according to IBES data from Refinitiv.
Up to Wednesday's close, Accenture's shares have risen 30% this year, higher than the 20% gains of the five-member S&P 500 IT Consulting & Other Services index. They were up marginally at $183.45 in Thursday's premarket trading.