Accenture cuts revenue outlook, stock crashes 11% in pre-market trading
Accenture lowered the upper end of its annual revenue growth forecast on Thursday, signalling that companies remain cautious on discretionary technology spending despite continued investment
Accenture lowered the upper end of its annual revenue growth forecast on Thursday, signalling that companies remain cautious on discretionary technology spending despite continued investment in artificial intelligence and cybersecurity.The consulting giant now expects revenue growth of 3%-4% for FY26, narrowing its earlier guidance of 3%-5%. It also forecast fourth-quarter revenue of $17.75 billion-$18.4 billion, below analysts' consensus estimate of $18.47 billion, according to LSEG data.The weaker outlook overshadowed Accenture's announcement of $4.18 billion worth of cybersecurity acquisitions, sending its shares down more than 11% in premarket trading.The company said it will acquire asset intelligence company runZero and device security specialist NetRise, while also taking a majority stake in industrial cybersecurity firm Dragos. The transactions are expected to close in August or September, subject to regulatory approvals.The acquisitions are aimed at expanding Accenture's cybersecurity capabilities, particularly in protecting industrial operations and critical infrastructure such as power grids, factories, pipelines and data centres amid rising cyber threats and increasing adoption of artificial intelligence.Together, the acquired businesses generate annual recurring revenue of about $208 million and will strengthen Accenture's cybersecurity business, which currently generates around $10 billion in annual revenue.The revised forecast suggests clients continue to delay or reduce spending on discretionary consulting projects as they navigate an uncertain macroeconomic environment.While demand for AI and cybersecurity services remains resilient, enterprises are becoming more selective in committing large transformation budgets, weighing on the broader consulting industry.
The BriefWire