Accenture cuts FY2026 outlook despite $18.7B Q3 revenue growth
Accenture just reported its Q3 FY2026 numbers, and things aren't looking too bright for the IT sector.
Even with $18.7 billion in revenue and 5.6% growth, the company lowered its yearly outlook to 3-4%, down from 4-5%.
Kotak said the midpoint of the guidance essentially implies nil organic growth, excluding the US Federal business.
Accenture managed services bookings below 1-to-1
The West Asia conflict hit Accenture's revenue by $100 million, thanks to disruptions and slower decisions in other markets.
Managed services bookings dropped sharply, with a book-to-bill ratio below 1-to-1, meaning fewer new deals compared to completed work.
Even though clients are getting more serious about AI, Kotak notes that these advances haven't boosted financial results yet.
Indian IT companies are also facing ongoing uncertainty and geopolitical risks, so a quick recovery isn't on the cards right now.