Accenture, one of the world’s largest providers of consulting and technology services, has lowered its revenue forecasts for the current financial year. This is primarily due to the impact of the conflict in the Middle East, which is having an increasingly marked effect on clients’ investment decisions and demand for advisory services. The news triggered a sharp market reaction – the company’s shares fell by around 18%, and the sell-off also affected other major players in the IT and consultancy sector.
According to Accenture, the conflict involving Iran cost the firm around $400 million in lost revenue in the third fiscal quarter. The management board also warns that the impact of the situation could be even greater in the next quarter. Chief Executive Julie Sweet emphasised that geopolitical uncertainty is prompting clients to cut back on spending deemed less urgent, particularly in the areas of traditional consultancy and business transformation.
The firm expects fourth-quarter revenue to be between $17.75 and $18.4 billion, which is below analysts’ expectations. At the same time, the forecast for annual revenue growth has been revised down to a range of 3–4 per cent, down from the previous estimate of 3–5 per cent.
The results also reflect a broader trend observed in the IT services market. An increasing proportion of clients’ budgets is being channelled into artificial intelligence projects, whilst traditional consultancy projects remain under pressure. Analysts point out that companies are primarily seeking investments that deliver rapid cost savings or efficiency gains.
Accenture’s response is a push into the field of industrial cybersecurity. The company has announced acquisitions totalling $4.18 billion, including Dragos and the security specialists runZero and NetRise. The aim is to strengthen its operations relating to the protection of critical infrastructure, factories and energy networks, which, with the development of AI and the growing number of connected devices, are becoming increasingly frequent targets of cyberattacks.
Despite a more challenging market environment, Accenture’s revenue in the third quarter rose by 6%, reaching $18.72 billion. At the same time, new orders fell by around 2%, suggesting that client caution may persist in the coming months.
