Accenture (NYSE: ACN) shares declined sharply in premarket trading Thursday after the consulting and technology firm cut its full-year revenue growth outlook and issued fourth-quarter guidance that missed Wall Street expectations. The downbeat forecast overshadowed news of a significant $4.18 billion cybersecurity acquisition push, as investor focus remained on persistent weakness in IT spending and uncertainty surrounding artificial intelligence's impact on consulting demand.
The company now expects full-year local-currency revenue growth of 3% to 4%, narrowing from its prior target of 3% to 5%. Management attributed the revision partly to ongoing pressure from U.S. federal contracts, which have been a drag on performance this year. Excluding that headwind, growth would have been 4% to 5%.
For the fiscal fourth quarter, Accenture guided revenue in the range of $17.75 billion to $18.4 billion, below the consensus estimate of $18.47 billion, according to LSEG data cited by Reuters. This revenue miss drew the bulk of investor attention, triggering the selloff.
Despite the cautious outlook, Accenture reported fiscal third-quarter results that showed some resilience. Revenue rose 6% year-over-year to $18.7 billion, or 3% in local currency. Diluted earnings per share increased 9% to $3.80, while operating margin expanded 20 basis points to 17.0%. However, new bookings slipped to $19.3 billion from $19.7 billion in the prior year.
CEO Julie Sweet described demand for large-scale reinvention as strong, noting the company has booked 104 clients with $100 million or more in business this fiscal year. She added that larger AI transformation deals are beginning to materialize. Still, investors sought clearer evidence that AI programs can offset softness elsewhere.
In a strategic move to bolster its cybersecurity capabilities, Accenture announced plans to acquire majority stakes in Dragos, as well as full ownership of runZero and NetRise. These acquisitions aim to expand the company's operational technology security offerings, which protect critical infrastructure such as power grids, plants, pipelines, warehouses, and data centers. The deals are expected to close in August or September, pending regulatory approvals, and are projected to generate approximately $208 million in annual recurring revenue as of June 2026.
Dragos CEO Robert M. Lee warned that cybersecurity failures in critical sectors like energy, water, and manufacturing can escalate into societal threats. The acquisition gives Accenture a deeper product and platform lineup in cybersecurity, moving beyond pure services. Investors were advised to look through expected near-term dilution and integration risks amid softer consulting demand.
Accenture's cautious outlook weighed on peer stocks. Infosys dropped 3.8%, Cognizant lost 4.4% in premarket U.S. trading, and Capgemini fell 6.8% in Paris, reflecting broader concerns about IT services demand.
Looking ahead, Accenture faces the risk that its AI investments may not quickly convert into large implementation projects, especially as some clients opt to handle more work with their own AI capabilities. The positive scenario includes stabilization in federal demand, continued cybersecurity growth, and AI projects advancing from pilots to larger, long-term transformation deals.
Accenture generated $3.6 billion in free cash flow during the quarter and returned $2.2 billion to shareholders through buybacks and a $1.63-per-share dividend. However, these metrics did little to lift the stock on Thursday.
