Accenture fell Thursday after the global technology services firm edged by fiscal fourth-quarter earnings estimates while its fiscal 2026 sales outlook came in light as many analysts expected.
Accenture earnings for the quarter ended Aug. 31 rose 9% to $3.03 per share on an adjusted basis, said the Dublin-based consulting firm. Including acquisitions, revenue increased 7% to $17.6 billion, amid lower U.S. federal government spending and weakness in the consulting business.
Analysts expected Accenture earnings of $2.98 a share on sales of $17.37 billion. Bookings came in at $21.3 billion, including $1.8 billion in artificial intelligence-related bookings, amid lowered expectations.
"Bookings of $21.3 billion (up 5.8% year-over-year) returned to growth, likely reflecting some catch-up from the prior two quarters being negative, but also a sign of demand not getting any worse," said Jefferies analyst Surinder Thind in a report. "Notably, AI bookings continue to improve, growing to $1.8 billion from $1.5 billion last quarter. The company also continues to restructure and retrain its workforce."
On the stock market today, Accenture stock fell 2.7% to close at 232.56. Heading into the Accenture earnings report, shares were down 32% in 2024, recently hitting their lowest levels since late 2020.
2026 Guidance For Accenture Stock
In the current quarter ending in November, Accenture said it expects revenue growth in a range of $18.1 billion to $18.75 billion versus estimates of $18.51 billion.
For fiscal 2025, which starts with the current October quarter, the company sees 1%-5% revenue growth. At the midpoint, its outlook came in below estimates of 5% growth to $73.16 billion.
At TD Cowen, analyst Bryan Bergin called fiscal Q4 results and guidance "better than feared into significantly negative street sentiment."
Keith Bachman, analyst at BMO Capital Markets, said in a report: "Sentiment in IT services remains negative given ongoing concerns for potential generative AI headwinds and Accenture's performance/guide is unlikely to change the narrative."
Accenture Stock Technical Ratings
On the Accenture earnings call with analysts, management commented on the Trump administration's plans to add a new $100,000 annual fee for H-1B visa applications.
"Accenture downplayed H-1B visa exposure, and we expect that the company can adjust the delivery strategy such that the enactment of fees has an immaterial impact to margins," said William Blair analyst Maggie Nolan in a report.
Meanwhile, Accenture stock holds an IBD Composite Rating of 40 out of a best-possible 99, according to IBD Stock Checkup.
IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Accenture stock has an Accumulation/Distribution Rating of E. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. Its current rating indicates more funds are buying than selling.
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