Accenture Forecasts Quarterly Revenue Below Estimates

On Thursday, Accenture forecast quarterly revenue below estimates due to clients' cautious spending on large IT transformation projects in an uncertain economic environment. As a result, shares of the Dublin, Ireland-based company declined more than 3% in premarket trading.

Challenging Economic Environment

Accenture is navigating a challenging economic environment, with clients delaying large digital transformation projects and prioritizing cost control and short-term initiatives. The company expects a 1% revenue hit for fiscal 2026 due to a slowdown in its federal business, as agencies are reining in spending and redirecting budgets.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Revenue Guidance

Accenture expects fiscal third-quarter revenue between $18.35 billion and $19.00 billion, with the midpoint slightly below analysts' average estimate of $18.72 billion, according to data compiled by LSEG. The company's forecast reflects its best view of the potential impact of the conflict in the Middle East.

Second-Quarter Results

Accenture reported revenue of $18.04 billion for the second quarter, a 8.3% increase from the same quarter last year, beating estimates of $17.84 billion. The company reported a profit of $2.93 per share, compared with $2.82 per share in the same quarter last year. New bookings, a metric that measures future revenue based on contracts, rose 6% to $22.1 billion in the second quarter.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline