Global consulting firm Accenture announced Thursday that it expects third-quarter revenue to fall short of Wall Street predictions as corporate clients reduce spending on major technology projects. The Dublin-based company's stock dropped 3% in early trading following the announcement.
Global technology consulting firm Accenture announced Thursday that its upcoming quarterly revenue projections fall short of Wall Street expectations, citing corporate clients’ hesitancy to invest in major information technology overhaul projects during uncertain economic times.
Following the announcement, stock prices for the Dublin-based consulting giant dropped 3% during pre-market trading sessions.
Economic headwinds have created obstacles for Accenture, as business customers postpone extensive digital modernization initiatives while prioritizing budget management and shorter-term projects instead of comprehensive system upgrades.
For its fiscal third quarter, Accenture anticipates revenue ranging from $18.35 billion to $19.00 billion. The middle point of this projection sits below the $18.72 billion average prediction from Wall Street analysts, based on LSEG data compilation.
During the second quarter, the company’s revenue climbed 8% to reach $18.04 billion, surpassing analyst predictions of $17.84 billion.
The technology firm posted earnings of $2.93 per share, an increase from the $2.82 per share recorded during the corresponding quarter in the previous year.
Contract bookings, which indicate potential future revenue streams, increased 6% to $22.1 billion throughout the second quarter period.
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