Accenture cuts annual revenue forecast following slowdown

IT services provider Accenture cut its fiscal-year 2024 revenue forecast on Thursday, as an uncertain economy prompts clients to cut spending on its consulting services.

Shares of the company fell around 5 per cent in premarket trading. Accenture now expects full-year revenue growth in the range of 1 to 3 per cent, from its prior forecast of 2 to 5 per cent.

The firm has been grappling with sluggish demand for its IT and consulting services as high interest rates and an uncertain economic outlook prompt clients to withhold expenditure.

After elevated client spending during the pandemic, analysts say growth in the industry has been decelerating over the past six quarters.

Accenture also forecast third-quarter revenue in the range of $16.25 billion to $16.85 billion, compared with an estimate of $17.01 billion, according to LSEG data. – Reuters