Global consulting giant Accenture saw its shares plunge 19% during intraday trading on the NYSE on 18 June, falling to $126.50, after the IT services company issued a fourth-quarter revenue forecast that fell short of Wall Street expectations.
The decline marked the stock’s second consecutive day of losses, dragging it to its lowest level since August 2017. The company said the Middle East conflict weighed on its performance during the third quarter and expects the weakness to persist in the current quarter, with several large deals being pushed back to 2027.
The consulting company expects revenue of $17.75 billion to $18.40 billion in the ongoing quarter, below the $18.47 billion forecast by analysts surveyed by Bloomberg.
The Dublin-based company also lowered its full-year outlook, now expecting revenue growth of 3% to 4% for the fiscal year ending in August, compared with its previous guidance of 3% to 5%.
Chief Executive Officer Julie Sweet said the conflict in the Middle East reduced revenue by approximately $100 million during the three months ended May and affected sales by nearly $400 million. She added that the impact of the conflict is expected to continue despite the apparent peace agreement between the US and Iran.
Another factor weighing on investor sentiment was Accenture’s announcement to acquire a majority stake in operational technology company Dragos, along with full ownership of cybersecurity firms runZero and NetRise.
While the company did not disclose the value of each transaction individually, it said the combined enterprise value of the three acquisitions is approximately $4.18 billion.
Mixed third-quarter performance
Accenture delivered a mixed set of third-quarter results. The company exceeded Wall Street’s earnings expectations, reporting earnings of $3.80 per share, compared with analysts’ estimates of $3.71 per share.
Revenue, however, came in slightly below expectations at $18.7 billion, versus the $18.8 billion anticipated by analysts.
New bookings, a key indicator of future revenue based on signed contracts, declined to $19.3 billion during the quarter from $19.7 billion a year earlier. Despite the decline, the company described the quarter as “strong”.
For the first nine months of the fiscal year, however, new bookings increased 5% to $59.3 billion. Operating margin also improved marginally to 17%, compared with 16.8% in the year-ago period.
Stock down 50% in 2026
Accenture shares have been under sustained pressure since February 2025, with the stock closing most subsequent months in the red as investors remain concerned about the long-term impact of artificial intelligence on traditional IT services businesses.
Since then, the stock has fallen 64%, making it one of the weakest-performing large-cap technology stocks on Wall Street. The recent sell-off has widened its year-to-date decline to 50%.
The slump follows a 24% decline in 2025, highlighting the prolonged challenges facing the company.
Its peers have also come under pressure, with Infosys and Capgemini SE falling more than 30% so far this year. By contrast, Accenture enjoyed a prolonged bull run between 2009 and 2021, delivering positive annual returns in 12 of those 13 years.
(With inputs from Bloomberg)
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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