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In the recent developments of the tech industry, Accenture plc (NYSE: NYSE:) has experienced a significant revenue miss and reduced guidance, leading to a 5% drop in its stock on Monday. Despite this setback, the company’s market valuation remains robust at nearly $200 billion, reflecting a 14% increase from the previous year. According to InvestingPro, Accenture’s adjusted market cap is $194.46 billion.
Accenture’s fiscal fourth quarter reported a net income of $2.15 per share. The period also saw a 10% year-on-year decrease in bookings, primarily attributed to weakened demand from the communications, media, and technology sectors. This is in line with InvestingPro Tips, which points out that the firm has seen slowing revenue growth recently. On the other hand, Accenture is praised for its high earnings quality, with free cash flow exceeding net income. The company also yields a high return on invested capital and has consistently increased its earnings per share.
Accenture’s performance is also noteworthy in the dividend department. The company has raised its dividend for four consecutive years and has maintained dividend payments for 19 consecutive years, according to InvestingPro Tips. This is supported by a 15.46% dividend growth reported by InvestingPro Data.
Meanwhile, IBM (NYSE: NYSE:) is charting a different course by focusing on enhancing business operations through artificial intelligence (AI). The company aims to transform its clients into AI creators, potentially leading to significant productivity increases. Paul Burton, IBM’s Asia Pacific General Manager, estimates that this shift could result in a $10 trillion productivity boost.
IBM’s CEO Arvind Krishna has projected that AI implementation will replace approximately 7,800 back-office jobs at IBM within the next five years. As part of its commitment to AI development and inclusivity, IBM has pledged to provide AI training for two million underrepresented workers by 2026.
For more insights like these, consider exploring InvestingPro, which offers numerous tips on companies like Accenture and IBM. These tips are part of a larger set of investing insights available to InvestingPro subscribers.
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