Accenture (ACN) - Nothing Exciting Here

Accenture (ACN) shares are down 40% since the March high and need to be cut in half again. No consultant should trade at 2x MV/Revenue.

Gen AI Bookings

• You can’t make the case that Gen AI is driving growth because there is little Revenue growth. Further, Gen AI is a small percentage of bookings.

• Frankly, I can’t imagine that Accenture is adding much client value as it relates to its Gen AI bookings business. ACN is likely helping clients with data prep, API set-up, and the rest which is lightweight work compared to SI work from 20 years ago and is only going to get easier from a plug-and-play perspective.

• If you are serious about leveraging predictive analytics, ML, RPA, Gen AI, you really need to get your enterprise data in order and should build out a serious data/analytics/AI team that cuts horizontally across the organization and reports in to the COO or CEO. If you’re having to lean on Accenture for this stuff you’re doing it incorrectly.

• Excel version HERE.

---