Accenture cuts full-year sales growth forecast to 3.5% and announces $4.18 billion in cybersecurity investments, spooking investors.
Accenture (ACN) shares dropped 18.9% at Thursday’s open after the company reported mixed earnings and slashed its full-year sales growth outlook. Revenue rose 6% year-over-year to $18.7 billion in Q3, while earnings per share climbed 9% to $3.80, beating estimates of $3.72 per share on $18.78 billion in revenue.
The decline was driven by management’s decision to lower the midpoint of its sales growth target from 4% to 3.5%. Accenture also announced $4.18 billion in investments to acquire three operational technology security firms, raising concerns about spending amid slowing growth.
Investors reacted negatively to the guidance cut and the multi-billion-dollar security push, which targets AI infrastructure and critical systems like power grids and data centers.