The Accenture sign was painted on August 7, 2024 in Warsaw, Poland.
Leksander Kalka | nuphoto | Getty Images
Stocks Accenture It slides on Thursday after the consulting firm said efforts to strengthen federal spending have begun weighing revenues.
The stock fell 7.3% after the second quarter revenue call said the federal services business lost its contract with the US government after a recent review.
“The federal government accounted for around 8% of global revenue in 2024 and 16% of US revenue in the US. As you know, the new administration has a clear goal of running the federal government more efficiently. In this process, many new procurement measures slowed, and many new procurement measures had a negative impact on sales and revenue.
Accenture is one of the first of the Giants of American companies, struck by the Trump administration’s so-called government efficiency, and an effort led by billionaire Elon Musk to reduce federal agencies and consolidate office space.
Sweet said Accenture’s federal services will confirm contracts with the best paid consulting companies contracted with the US government, affected by guidance from the US General Services Agency to all federal agencies, and then terminate contracts that are not considered critical of the relevant agencies.
“We continue to believe that work for federal clients is mission-critical, but as government priorities evolve and these assessments unfold, we expect continuous uncertainty,” Sweet said.
“We see an uptick in what has already been significant uncertainty in the global economic and geopolitical environment, indicating a shift from the first quarter of December 2025 revenue report,” Sweet added. “At the same time, I believe that the fundamentals of our industry will remain strong.”
Investor concerns about risks associated with slowing US government spending outperformed existing quarterly revenue and revenue results than the quarter announced before the market was made public on Thursday. The company reported revenue of $16.6 billion, $2.82 per share. It reported that this was higher than expected at $2.81 per share against $16.62 billion in revenue per fact set.
Accenture stocks have plummeted 22.9% over the past month, bringing the stock price down around 14.5% per year.
Consulting company stocks Booze Allen Hamilton I slid 8.1% on Thursday with sympathy.
