Accenture (ACN) shares plummeted 14% in premarket trading on Thursday, marking the biggest single‑day drop on record, after the consulting giant reported mixed fiscal third‑quarter results and significantly lowered its full‑year revenue growth outlook. The decline wiped out roughly $20 billion in market value, with the stock falling to $133.95 from around $155.
For the three months ended May 31, Accenture’s revenue came in at $18.72 billion, just shy of the $18.75 billion consensus. Earnings per share of $3.80 beat the $3.71 estimate. However, management now expects full‑year revenue growth of only 3% to 4% in local currency, down from the prior forecast of 4% to 6% – the second cut this year. Fourth‑quarter revenue guidance of $17.75 billion to $18.4 billion also missed the $18.47 billion analyst average.
Adding to the pressure, Accenture announced a $4.18 billion cybersecurity expansion: acquiring a majority stake in industrial cybersecurity firm Dragos and fully buying asset intelligence company runZero and device security specialist NetRise. The deals, set to close in August or September, will add $208 million in combined annual recurring revenue to Accenture’s existing $10 billion cybersecurity unit.
Morgan Stanley downgraded ACN to Equal‑Weight just before earnings, citing heavy AI investments that are diverting resources from traditional IT services and a lack of the expected budget recovery. New bookings slipped to $19.3 billion from $19.7 billion a year earlier, and CEO Julie Sweet’s upbeat tone failed to reassure investors. Peer stocks also suffered: Infosys fell 3.8%, Cognizant dropped 4.4%, and Capgemini slid 6.8%.
