Solid Quarter for Accenture

Despite a fairly solid quarterly performance, one surprising area of weakness was the growth in the Health & Public Service (H&PS) business. Accenture noted that H&PS did not see an anticipated uptick in activity in North America, citing slower-than-expected decision-making and that the initiations of new projects were being delayed due to uncertainty surrounding healthcare legislation and state and federal budgets. We expect this impact to last through the end of the fiscal year and will continue to monitor the legislative action or inaction within the U.S.

For the quarter, revenue rose 5% year over year to $8.87 billion (increased 7% in constant currency). Growth was driven by Operations, which grew double-digits for the sixth consecutive quarter, and Application Services, which posted high-single-digit growth. Meanwhile, Strategy and Consulting Services grew in the low-single-digits.

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