Accenture Forecasts Lower Revenue Amid Cautious Client Spending

Accenture, a Dublin-based company, forecast its fiscal third-quarter revenue below analysts' estimates, citing cautious client spending on large IT transformation projects amid an uncertain economic environment. This led to a more than 3% drop in Accenture's shares in premarket trading. The company also anticipates a 1% revenue hit for fiscal 2026 due to a slowdown in its federal business as agencies rein in spending. Despite the challenging outlook, Accenture reported stronger-than-expected second-quarter revenue of $18.04 billion and a profit of $2.93 per share, with new bookings rising 6% to $22.1 billion. The company's forecast also considers the potential impact of the conflict in the Middle East.