Accenture shares plunge 20% as AI disruption fears shake the global IT sector

Accenture stock drops 20%, buys $4.18bn of cybersecurity

Accenture's shares fell a record 20% on a weak outlook and an Iran-war hit, even as it bought industrial-cybersecurity firms Dragos, runZero, and NetRise, growth that AI is less likely to automate away. Accenture had the worst day in its history on the stock market on Thursday, and the reason cuts to the heart of the AI era: investors increasingly fear that AI will hollow out the consulting business itself. Shares fell as much as 20 per cent, the company's worst one-day drop on record, after it forecast weaker revenue for the current quarter. The stock is now down more than 50 per cent this year. The immediate triggers were a soft outlook and the war in the Middle East, which Accenture said cut about $400mn from sales in the quarter, with more expected. But the deeper worry is structural. "AI is disrupting demand across consulting and managed service," Bloomberg Intelligence wrote. Apollo's Scott Kleinman recently argued that professional services, law firms, accountancies, and consultancies, are the next sector after software to be disrupted by AI. For a company that sells AI transformation for a living, the fear is that the same technology makes much of its own labour redundant. Rivals were hit too. Capgemini and Infosys are down more than 30 per cent this year, and Cognizant and IBM fell on the day. The numbers behind the drop The quarter itself was not a disaster. Revenue rose 6 per cent to $18.7bn and earnings per share climbed 9 per cent to $3.80. It was the forward look that spooked investors. New bookings fell about 2 per cent, Accenture guided current-quarter revenue below analyst expectations, and it trimmed its full-year growth forecast to 3 to 4 per cent. The $4.18bn answer On the same morning, Accenture made its pivot explicit. It agreed to buy a majority stake in Dragos and all of runZero and NetRise for a combined $4.18bn, a bet on securing the physical world. The three specialise in operational technology security, protecting the systems that run power grids, pipelines, factories, and data centres, an area Accenture argues is dangerously underfunded as AI makes critical infrastructure both more connected and more exposed. The deals add about $208mn in annual recurring revenue and expand a cybersecurity arm that has grown from $700mn in 2016 to $10bn last year. It is part of a wider land grab. Accenture says it now plans to spend $9bn on acquisitions this year, up from $5bn, alongside smaller deals this week for Siemens-focused software firm IndX and Italian digital-health company Alfahealth. The logic is the same one driving the selloff, read in reverse. As AI threatens to automate the white-collar work at the core of Accenture's business, the company is buying its way toward the parts of tech that are growing and harder to replace, like defending critical infrastructure from increasingly AI-powered attacks. Whether $4.18bn of cybersecurity can outrun the disruption tanking the stock is the question now hanging over the consulting industry.

Accenture sees AI moving from pilots to production in larger numbers, with tokenomics offering revenue opportunities as a side-effect

We are moving clients from using AI to running on AI. An important distinction from Julie Sweet, CEO at Accenture, as she pitches that 2026 is seeing more and more clients move from AI pilots of production status: We're starting to see clients who have more advanced digital core has moved to larger AI transformation programs. You can see this demand in several significant AI-focused wins across multiple industries and markets which we publicly announced with companies like British Telecom Group, Mitsubishi Chemical, NSK, Piraeus , Stellantis, TEPCO, Vodafone and the Women's Tennis Association. Enterprises continue to invest in the foundations needed to scale AI, she adds, including strengthening their digital core through cloud, data, security and operating model transformation: Clients with more advanced digital cores are starting to take on larger AI programs, exciting green shoots. These large-scale AI programs are complex. And to make advanced AI work, deep industry and functional knowledge is needed in addition to technology and AI expertise. In addition, clients continue to look to re-invent faster: A lot of our re-invention work today is helping clients get ready for AI and data remains a critical enabler with at least one out of every two advanced AI projects continuing to lead to a data project. BT Group is a good use case that she points to: Our long-standing relationship is expanding into a new AI partnership for BT Business, the division which provides the connectivity backbone for UK businesses and public services. BT Business manages networks have massive scale and a threat environment that is evolving faster than traditional operating models can keep up with. So we're embedding AI directly into the core of how they operate, building on their existing network intelligence, customer data and service management platform. AIOps capabilities with autonomous agents will detect route and resolve incidents with cell healing that accelerates how quickly issues are resolved. The result will be fewer disruptions, faster resolution and a more resilient network positioning BT Business to lead the next generation of AI-powered managed services to its customers. Tokenomics All of this increased use and maturity of AI client programs does, of course, open Accenture up to the wider 'tokenomics' debate, as users find that their usage bills are unexpectedly high as Jevons Paradox kicks in. Sweet has been here before and reckons that Accenture has a solution: We have a practice that we're starting to grow now is on how to help clients optimize their use of tokens. It feels a lot like the cloud scenarios. Remember when people were moving to the cloud, and then they were like, 'Oh, wait a minute, we're spending a lot more on the cloud than we thought', and we built a whole FinOps practice on helping optimize cloud. So we definitely think that we're seeing that with the clients, and they're coming to us because we're doing a really good job ourselves of being able to know how you use the tokens, which models you use for which problems. That's something we've been focused on since the very beginning. It's also helping because we have delivered real ROI and our clients are seeing the spend, but they're struggling with the ROI and so it's helping us there. That could mean extra revenue as a side-effect of tokenomics awareness, she suggests: There's a certain amount of spending that's going to happen, so we're not seeing it be material to impact the spend on services today. And if anything, we think it's going to drive more to use services and that's how we're seeing it develop. Managed services There is also an uptick in the number of clients looking to achieve greater efficiencies and growth through managed services across the enterprise, says Sweet: We're seeing the nature of these programs with managed services evolve with clients asking from our consulting and AI expertise within them, exactly the shift we have been positioning for. A case in point is US retailer Bath & Body Works: A global leader in personal care and home fragrance, Bath & Body Works is one of America's most iconic retail brands. They have a strong growth agenda built around their core product lines, brand modernization and expanded distribution. Delivering on that requires a smarter, more scalable operating model underneath it. We're expanding our partnership to make that possible, consolidating fragmented operations across critical business functions into a unified managed services model with Agentic-AI embedded throughout and humans in the lead. The result is automation replacing manual effort, faster speed to market and significant cost savings and productivity gains that Bath & Body Works can re-invest directly into growth. Physical AI In terms of the future bets, Accenture just made a $4.18 billion bet on the importance physical AI and security with the taking of a majority stake in industrial cybersecurity firm Dragos and the full-scale acquisition of asset intelligence company runZero and device security specialist NetRise. Physical AI is coming, argues Sweet: Everything is going to be connected. You can't have an AI revolution unless you have critical infrastructure, and when you start moving into physical AI, you can't have that without OT security. Ninety-five percent spend in the past has been about IT security, and OT security is a much bigger market and critical need. And big market opportunities are Accenture's bread-and-butter, of course: We're starting from a $10 billion cybersecurity services business that we've built over the last 10 years, organically and inorganically...We've been in OT security all along. One of the things that we do really well is to understand where the technology is going to create demand in our clients. In terms of the new acquisitions, she explains: Dragos has an excellent platform. The addition of Net Ryzen 10 is just enhancing an already strong program, platform....We view this as really a massive opportunity because it's meeting such a critical need and that is, simply, you cannot succeed in AI unless you've got security. My take Wall Street was disappointed in Accenture as it released Q3 numbers that fell short of expectations, compounded by forward guidance that didn't live up to its hopes. Revenue came in $18.72 billion, up six percent year-on-year, while net income was $2.39 billion, up from $2.24 billion a year ago. But bookings were down two percent year-on-year to $19.32 billion. Sweet admitted the numbers disappointed in the post-earnings analyst call: We were impacted by the conflict in the Middle East. We saw a revenue impact of approximately $100 million compared to our expectations, which is all consulting type of work, split evenly between the direct impact on our Middle East business and indirect effects outside of the region. In the last few weeks of the quarter, we saw this indirect impact globally in products and to a lesser degree, in resources, mostly in discretionary spend. In addition, sales in the Middle East were impacted by approximately $400 million and also in EMEA due to longer decision-making... a couple of our large managed services opportunities moved into FY '27 for company-specific reasons. Wall St, of course, had its by-now traditional hissy fit and the share price took a tumble.

Indian tech's Nifty share shrinks to record low on AI worries

India's IT sector is losing dominance in the Nifty 50 as AI disruption fears trigger sustained selling. Its index weight has dropped to a record low, while the Nifty IT index has sharply underperformed. Reduced index weight is also limiting inflows from passive funds, weakening the sector's overall market influence. India's software exporters are steadily losing their sway on the country's stock market as concerns over artificial intelligence-led disruption trigger a prolonged selloff in the sector. The combined weight of five information technology companies in the NSE Nifty 50 Index has fallen below 7.6%, the lowest at least since 2002, according to data compiled by Bloomberg. At their peak more than two decades ago, the cohort accounted for more than a fifth of the benchmark. The retreat marks a shift in leadership within India's $5 trillion stock market, reducing the sector's influence on benchmark returns. The Nifty IT Index has slumped 29% this year, compared with a 9% decline in the broader gauge, as investors worry that generative AI could undermine the traditional outsourcing model that powered the industry's rise in the early 2000s. As IT stocks lose value, their weightings in major indexes have also shrunk, reducing the amount of money they receive from the growing number of passive funds. Nifty 50-linked index and exchange-traded funds now manage about 5 trillion rupees ($52.8 billion). At current weights, they hold about 350 billion rupees of IT stocks, compared with roughly 1 trillion rupees if the sector had retained its peak position in the benchmark. Technology is now the fifth-largest sector in the Nifty 50, trailing financials, consumer discretionary, energy and industrials. Infosys Ltd. has slipped to be the eighth-largest stock in the Nifty 50 by weight from third place five years ago, whereas Tata Consultancy Services Ltd. ranks 13th.

Accenture Sees AI Growth Ahead Even As Iran War Cuts Revenue

'We believe that AI will be a tailwind for us and our industry as it scales, because it is a catalyst for reinvention and is creating new opportunities for growth and efficiency for our clients and for us,' says Accenture CEO Julie Sweet. Accenture reported strong third-quarter growth with an additional $1 billion in revenue compared to the same period last year, even as geopolitical tensions in the Middle East weighed on results. The company's stock, down about 50 percent since the start of the year, declined more than 18 percent to $127.30 in trading on Thursday. The Dublin-based solutions provider, No. 1 on CRN's Solution Provider 500 list, generated $3.4 billion in additional revenue year-to-date compared with fiscal 2025, while also delivering margin expansion, earnings-per-share growth and strong free cash flow. Speaking on the company's investor relations call Thursday, CEO Julie Sweet said the Iran war and the resulting chaos in the Middle East dropped quarterly revenue by about $100 million relative to expectations. The impact mostly hit consulting work and was evenly split between direct effects in the region and indirect consequences across global markets, she said. Sales were also affected, with about $400 million in sales impacted in the Middle East and parts of Europe, the Middle East and Africa due to slower client decision-making. [Related: Accenture CEO: AI Tools Are Helping Us 'Become The Most AI-Enabled Company In The World'] "Because the indirect impact really started in the last few weeks and mostly in discretionary spend, we do think that there will be more impact in Q4," she said. "It's difficult, of course, to predict exactly how it's all going to play out." Despite those challenges, executives remained optimistic about the growth opportunities created by AI as Sweet said the company is increasingly helping clients move beyond AI experimentation into large-scale initiatives. "We believe that AI will be a tailwind for us and our industry as it scales, because it is a catalyst for reinvention and is creating new opportunities for growth and efficiency for our clients and for us," she said. The company is also expanding relationships with major AI and data providers including Anthropic, Databricks, Google Gemini, Mistral AI, Nvidia, OpenAI, Palantir and Snowflake. Sweet said bookings are expected to double from these partnerships. Alongside its AI push, Accenture made one its largest cybersecurity investments to date with the acquisition of a majority stake in Dragos as well as full ownership of runZero and NetRise. The combined businesses are valued at about $4.175 billion and creates what Sweet described as "a first-of-its-kind operational technology cybersecurity platform," focused on protecting infrastructure such as power grids, pipelines, manufacturing facilities and data centers. "You cannot have an AI revolution without critical infrastructure, and you can't have that without OT security, which is where today the world is most vulnerable," she said. "This is about long-term growth and really a massive market," she said. "We view a really massive opportunity because it is meeting such a critical need. You cannot succeed in AI unless you've got security." In Q3, revenue rose six percent year-over-year to $18.7 billion. The company generated $19.3 billion in new bookings and generated free cash flow of $3.6 billion during the quarter.

IT nightmare on loop, Accenture's 20% fall highlights AI disruption

Indian tech stocks experienced a sharp decline Friday, mirroring a significant drop in global IT giant Accenture due to weaker-than-expected revenue and order forecasts. The Nifty IT index plunged over 6%, with major players like Infosys and TCS seeing substantial losses. Analysts suggest valuations are now attractive but future growth remains uncertain amid AI advancements, advising caution for investors. Mumbai: Indian technology stocks slumped Friday, with the gauge representing the bellwethers losing more than 6% during the day and closed 3.7% lower, after the world's biggest outsourcing company by market value, Accenture, slumped 20% on revenue forecasts and order bookings that trailed Wall Street expectations. Battered by AI-spawned disruptions, Accenture has now lost nearly 50% in a year, putting a question mark on the sustainable competitive advantage of the Indian-listed pureplay that had hitherto relied largely on outsourcing-led cost arbitrage to build a $280-billion industry over the past three decades. For Accenture, which often provides the cue for India's outsourcing industry, its initial 20% loss Thursday was the worst in its trading history. The Nifty IT index slumped as much as 6.4% during the day and closed at 27,426.85-the lowest level since May 14. The Nifty declined 0.6%. Infosys slumped 6.5% while Tata Consultancy Services (TCS) lost 3.1%. NIFTY IT TANKS 6%: Local stocks' valuations in buy zone, but time's not right to enter: Analysts Accenture's guidance and circumspect commentary triggered the sell-off for the second straight day. Battered valuations limit downside in these stocks, analysts believe, but lack of clarity on growth in a world powered by AI offers restricted scope for upside, too. "Most of the negatives are priced in and the valuations are now at a discount to Nifty valuations," said Sunny Agrawal, analyst at SBI Securities. "So, stocks are expected to stabilise but the growth outlook remains hazy." Large-cap IT companies guided for tepid growth of 2-5% while midcaps like Coforge, Persistent Systems expect low double-digit growth, he said. All constituents of the IT index declined except Oracle Financial Services Software that bucked the weak trend and gained 2.9%. LTM dropped 4%, while Mphasis slipped 2.9% lower. Tech Mahindra, HCL Technologies, and Persistent Systems fell over 2% each. Accenture's guidance suggests the likelihood of further pain in the next couple of quarters as revenue revival has taken a backseat, said Ajit Mishra, SVP Research at Religare Broking. "The Nifty IT Index is on the verge of retesting the 2023 lows of 26,300 from where it had rebounded to a record high of around 46,000 levels," he said. "If it fails to hold these levels then it can slide lower to 24,200-24,300 levels." Mishra said that the Infosys breached a major trendline on the monthly chart and a breakdown below ₹1,040 could confirm further breakdown. So far this year, the Nifty IT index plunged 27.6% while benchmark Nifty fell 8.1%. "IT has lost investor favour due to likely AI led deflationary impact and uncertainty on growth from AI led offerings for clients," said Agrawal. "Investors should wait for the Q1 commentary to deploy funds in IT sector." "That said, there are better opportunities available in the equities across sectors like banking, auto ancillary, hotels, defence," he added. Mishra said that investors should stick to the winners from the pack rather than adding stocks simply because valuations are attractive. "Investors should avoid fresh positions in IT stocks for the short-to-medium term and refrain from adding to existing bets for now," he said. "HCL Technologies, Oracle and Coforge are relatively better placed over a one-to-two-year timeframe."

US Stock Market: Accenture's AI transformation faces investor skepticism as stock plunges; CEO Julie Sweet remains confident

Accenture's shares plunged nearly 20% after its fiscal third-quarter results revealed weaker-than-expected bookings and a softer outlook. CEO Julie Sweet insists the current phase reflects a multi-year AI-driven transformation, not structural weakness, as clients move from AI pilots to large-scale deployment. Accenture is facing renewed investor scrutiny after its latest quarterly performance triggered a sharp selloff, even as CEO Julie Sweet continues to push a long-term narrative centered on artificial intelligence (AI)-driven transformation. The company's shares fell nearly 20% following its fiscal third-quarter results, as investors reacted to weaker-than-expected bookings and a softer outlook. Despite the selloff, management has maintained that the current phase reflects transition rather than structural weakness. US MarketsPowered By As on 19 Jun 2026, 01:30 AM IST S&P 500 Top Gainers Corning194.92(11.13%) Intel133.99(10.64%) Super Micro Computer30.66(10.37%) KLA259.56(8.73%) Gainers" S&P 500 Top Losers Accenture127.98(-17.97%) EPAM Systems76.64(-12.61%) Cognizant Tech Solns43.70(-10.49%) Coterra Energy32.56(-8.62%) Losers" Revenue growth slows amid softer demand Accenture reported revenue of approximately $18.7 billion for the quarter, showing year-on-year growth but still missing market expectations. The company also reported a decline in new bookings, reflecting a more cautious enterprise spending environment. Bookings reportedly fell in the low single digits, while the company trimmed its full-year growth guidance, citing macroeconomic uncertainty and geopolitical disruptions, particularly in the Middle East, according to a CNBC report. "You are missing the point," says Julie Sweet In response to investor concerns, CEO Julie Sweet in an interview to CNBC pushed back strongly against the negative market interpretation. Sweet told investors they are "missing the point," arguing that the company is undergoing a multi-year transformation cycle driven by enterprise AI adoption. She emphasized in the CNBC interview that clients are steadily moving from experimental AI pilots toward large-scale deployment, a shift she believes will eventually translate into stronger revenue momentum. AI transformation strategy remains central Sweet reiterated that Accenture's repositioning around AI-led "reinvention services" is designed to integrate consulting, technology, and operations into a unified delivery model. This restructuring approach was outlined in detail in Business Insider's analysis of Accenture's AI transformation strategy. However, she also acknowledged that the transition will take time to fully reflect in financial results, particularly as enterprises gradually shift from testing AI tools to embedding them into core workflows. Market concerns over timing and execution While management remains optimistic, investor sentiment has turned cautious due to slowing bookings and reduced guidance. According to CNBC's earnings interview coverage, the company cited weaker discretionary spending and geopolitical disruption as key near-term pressures. Analysts have also pointed to the risk that AI-related investments may take longer to monetize than initially expected, especially in large enterprise transformation cycles. "We are optimistic," Sweet insists Despite the pressure on the stock, Sweet has continued to emphasize long-term opportunity. As per TOI report, she reiterated that Accenture remains optimistic because it sees AI as a structural growth driver rather than a short-term trend. She argued that enterprises are still in the early stages of AI adoption, and that large-scale transformation programs will ultimately reshape demand for consulting and technology services. The bigger debate: transformation vs slowdown The contrast between Accenture's strategic messaging and its near-term financial performance highlights a broader debate across the IT services industry: whether AI represents an immediate growth accelerator or a longer-term restructuring phase. For now, Accenture's leadership is firmly in the second camp -- while the market appears to be demanding faster evidence that AI investments are converting into revenue growth.

Accenture's weak bookings raise AI fears, but Indian IT may weather the storm: Sandip Agarwal

Accenture's recent earnings reveal a sharp decline in new bookings and a reduced guidance, sparking concerns about AI's impact on the IT services industry. While AI isn't officially blamed, the significant drop in orders suggests a deflationary effect. However, Indian IT firms are expected to remain resilient due to different geographical exposure and operational strengths. Accenture's latest quarterly earnings have reignited concerns over whether artificial intelligence is beginning to reshape the global IT services industry. While the consulting giant delivered a solid financial performance, a sharp decline in new bookings and a reduction in guidance have raised fresh questions about the pace of enterprise technology spending. According to market expert, Sandip Agarwal from Sowilo Investment Managers, the headline numbers were largely in line with expectations, but the drop in order inflows deserves close attention. "I see Accenture's numbers in three parts. First, the reported numbers show no disappointment. Second, bookings are down 14.7%. Managed services performed slightly better, but the decline is unexpectedly sharp, which is definitely a negative read-through. Third is the guidance cut. I do not read too much into it because, excluding the Federal Reserve-related impact, you have to align your growth accordingly," he said. AI Yet to Be Blamed Officially Despite widespread speculation, Accenture has not directly attributed weaker bookings or lower guidance to artificial intelligence. Agarwal believes that is an important distinction. "The current quarter's numbers are good, so there is no negative surprise. AI has not been mentioned as the reason for softer bookings or the guidance cut. That is a positive read-through," he said. However, he acknowledged that the steep decline in order bookings cannot be ignored. "The order book is materially lower. A 15% year-on-year decline is substantial. The deflationary impact of AI, which we expected, will likely continue for another quarter or so. After that, the industry should have a better base from which to grow," he added. Limited Impact Expected on Indian IT While Accenture's stock reacted sharply to the results, Agarwal believes the implications for Indian IT companies could be less severe than many investors fear. He noted that Accenture has historically grown at a slower pace than Indian IT firms and expects domestic companies to remain relatively resilient. "Accenture's growth rate has always been 2-3% lower than Indian IT growth. I do not see a material impact on current analyst forecasts for Indian IT. There may be a stock rub-off effect because Accenture fell sharply, but from an operational perspective, Indian IT should be in a much better position from this quarter." Why Indian IT Could Stay Resilient Agarwal also pointed out that Indian IT companies have a different geographical exposure compared to Accenture, making them less vulnerable to some of the current global uncertainties. "Indian IT companies do not have the same level of exposure to West Asia as Accenture. We are more exposed to Europe and the US, and I do not see those regions showing a significant slowdown yet," he said. He added that discretionary spending remains under pressure due to several macroeconomic concerns. "Discretionary spending is low because of uncertainty over the war, corporate earnings, interest rates, and AI. There is also a lot of euphoria around AI, which is drawing investment toward that space," he added. A Buying Opportunity Despite Near-Term Pain? While acknowledging that the sector could witness another quarter of weakness, Agarwal believes current valuations already reflect much of the pessimism. "Right now is probably the time to buy. Hardware spending has already seen a strong upcycle. AI platform providers like Microsoft and Grok should continue to do well, and IT services are now entering the next phase," he said. He expects concerns around AI replacing traditional IT services to fade over time. "There could be one more quarter of pain. People will talk about the death of IT, but I remain optimistic given current valuations. It is a lower-growth industry now, but even lower growth deserves a minimum valuation multiple," he said. Looking ahead, he remains constructive on the sector's earnings outlook. "We see EPS growth of 50% to 70%, depending on the company. Even if valuation multiples remain unchanged, that can still deliver very attractive returns over the next two to three years."

Indian IT Stocks Stumble, Following U.S. Peers as AI Angst Resurfaces

By Kimberley Kao and Fabiana Negrin Ochoa Accenture's share slide overnight bled over into major software stocks in India on Friday, reflecting continued worries that artificial intelligence will render some IT services obsolete. Information-technology consulting firm Accenture's stock plunged 18% Thursday after it cut revenue guidance for the fiscal year, resurfacing concerns about the health of the broader sector. U.S.-listed shares of Indian IT heavyweight Infosys slid 9.7% overnight, while Wipro lost 3.6%. That continued into the last trading day of the week in India, with Infosys down 7.6%, Tata Consultancy Services losing 5.6% and Wipro 2.7% lower. India's benchmark Sensex index lost 1.0%. IT stocks are expected to remain under pressure following Accenture's weak outlook, said Nandish Shah, deputy vice president at HDFC Securities. For Citi analysts, the read-through of Accenture's quarterly results and guidance doesn't bode well for Indian IT companies. The U.S. firm serves as a bellwether for the India sector, which has sizable exposure to areas of weakness like the North American market. They remain cautious toward the sector given AI disruption, increased competition and macro uncertainty. A steady stream of tools released by AI developers that can automate complicated office and legal tasks spurred a $1.6 trillion wipeout in software stocks earlier this year. Another headwind comes from the enduring impact of the Middle East conflict. Accenture flagged a direct revenue hit to its Middle East business due to the conflict, and Nomura research analysts expect similar hits to revenues and deal bookings for the India IT services sector in the current quarter. The indirect effects may spill over into the coming months as it remains unclear how quickly spending behaviour will normalize especially in sectors like automotives, Nomura said. Still, AI can continue to drive demand for cloud, data and platform modernization services, it added. "The AI implementation opportunity will surely materialize" for Indian IT firms, "but it may not accrue to the traditional vendors like it did in the past and a new, platformised AI native vendor template will emerge," Motilal Oswal analysts said in a report. Accenture's earnings are a bad sign for India IT firms, Motilal Oswal said, noting that outsourcing bookings fell and there are limited triggers to improve revenue. It expects most large companies in the sector to report weak earnings for the current quarter. Write to Kimberley Kao at [email protected] and Fabiana Negrin Ochoa at [email protected]

Accenture Tempers Outlook as 3Q Bookings Fall

Accenture tempered its outlook for the year and said bookings fell in its fiscal third quarter, despite continually strong artificial-intelligence adoption that drove demand for its services. The technology-consulting company on Thursday posted net income of $2.34 billion for its three months ended May 31, compared with $2.2 billion a year earlier. Quarterly earnings came out to $3.80 a share, compared with analyst views for $3.71 a share, according to FactSet. Revenue rose 5.6% to $18.72 billion, compared with Wall Street models for $18.78 billion. New bookings fell to $19.3 billion from $19.7 billion last year. Chief Executive Julie Sweet said demand for large-scale AI transformation programs remains strong, and that the company is additionally executing its strategy to capture new areas of growth. Looking ahead, Accenture narrowed its fiscal-year outlook, now guiding for revenue growth of 3% to 4% in local currency, compared with a prior forecast for growth of 3% to 5%. The company also raised the floor of its adjusted earnings outlook to $13.78 a share from $13.52 a share, while maintaining the ceiling at $13.90 a share. Shares fell 10% in premarket trading, to $140.05.