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Strong Bookings Drive Accenture’s Business

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Net bookings tailwinds

Accenture (ACN) has continued to gain from strong net booking trends in the last five quarters, buoyed by healthy net bookings in its consulting and outsourcing businesses over the period. Moreover, increased contract renewals coupled with the company’s signing of new deals has led to solid growth in its net bookings over the last five quarters.

The ongoing trend of digital transformation to the cloud has also helped Accenture boost its net bookings growth over the last five quarters.

In the graph above, we can see Accenture’s net bookings trend over the last five quarters. In the last five quarters, the company’s net bookings have risen at a CAGR (compound annual growth rate) of 4.7%.

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Net bookings from consulting and outsourcing

In fiscal 1Q18, Accenture’s total net bookings stood at nearly $10 billion compared to $8.3 billion in the previous year’s quarter. Moreover, in fiscal 2017, the company’s net bookings came in at $37.4 billion compared to $35.4 billion in fiscal 2016. In the last three years, the company’s net bookings have grown at a CAGR of 4.3%.

In fiscal 1Q18, net bookings from Accenture’s consulting business came in at $5.9 billion compared to $4.9 billion in fiscal 1Q17. In fiscal 1Q18, the net bookings from its outsourcing business stood at nearly $4 billion compared to $3.4 billion in fiscal 1Q17. The fiscal 1Q18 book-to-bill ratios of the consulting and outsourcing businesses stood at 1.1 and 0.9, respectively.

Accenture continues to invest heavily in new products and services, which may not only drive new bookings for the company but also downplay the competition from other big information technology players such as International Business Machines (IBM) and Microsoft (MSFT).

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