Accenture forecasts quarterly revenue below estimates on cautious enterprise spending

(Reuters) - Accenture forecast quarterly revenue below estimates on Thursday, as clients remain cautious on spending on large IT transformation projects amid an uncertain economic environment.

Shares of the Dublin, Ireland-based company were down more than 3% in premarket trading.

The company has been navigating a challenging economic environment, as clients delay large digital transformation projects and prioritize cost control and short-term initiatives.

Accenture expects a 1% revenue hit for fiscal 2026 from a slowdown in its federal business as agencies are reining in spending and redirecting budgets.

Analysts have said AI should support growth over the long term, but weak demand due to cautious client spending is unlikely to fully recover before 2028.

The company expects fiscal third-quarter revenue between $18.35 billion and $19.00 billion, with the midpoint slightly below analysts' average estimate of $18.72 billion, according to data compiled by LSEG.

Accenture said its forecast reflects the company's best view of the potential impact of the conflict in the Middle East.