Accenture cuts growth outlook to 3% to 4%, stock drops
Business
Accenture just lowered its annual revenue growth outlook and now expects between 3% and 4% instead of up to 5%.
This move sent its shares tumbling by 10%, landing at $139 in premarket trading.
Even so, the company says demand for big transformation projects, especially in AI, is strong.
Accenture revenue up 6% margin 17%
Despite missing analysts' expectations this quarter, Accenture saw a 6% revenue bump and improved its operating margin.
CEO Julie Sweet highlighted rising bookings for major deals.
The company is also investing $4.18 billion in cybersecurity acquisitions and sticking to its full-year earnings and cash flow goals.
Year-to-date, the IT and consulting firm's Q3 revenue rose 6%, with operating margin increased by 20 basis points to 17%.