Bengaluru: Accenture on Thursday lowered the upper end of its fiscal 2026 revenue growth forecast, signalling continued caution in enterprise technology spending despite robust demand for AI, cloud and cybersecurity services.
Accenture now expects annual revenue growth of 3% to 4% in local currency, narrowing its earlier guidance of 3% to 5%. Accenture follows a September–August financial year.
The revised outlook rattled investors, sending shares of the Dublin-headquartered IT services giant down as much as 17% to about $129 in early NYSE trade. The selloff spread across the technology services sector, with Capgemini falling 8.4%, while Infosys and Wipro ADRs declined about 8% and 7%, respectively, as concerns over slowing growth weighed on IT stocks globally.
The weaker outlook overshadowed an otherwise solid third-quarter performance. Revenue for the quarter ended May 31 rose 6% year-on-year to $18.7 billion in US dollar terms, or 3% in local currency. New bookings stood at $19.3 billion, a 2% decrease in dollar terms. "Demand for large-scale reinvention remains strong — 104 quarterly client bookings of $100 million or more year-to-date, up 13% — and we are seeing more large-scale AI transformation programs, while executing our strategy to capture new areas of growth," Accenture Chair and CEO Julie Sweet said. Operating margin expanded 20 basis points to 17%, while diluted earnings per share rose 9% to $3.8. Free cash flow for the quarter stood at $3.6 billion.
For the first nine months of FY26, Accenture generated $55.5 billion in revenue, up 7% in US dollar terms and 4% in local currency. Free cash flow during the period reached $8.8 billion. The company also raised its expected cash returns to shareholders to at least $9.5 billion for the fiscal year.
Accenture ended the quarter with 798,739 employees globally, adding more than 12,000 employees sequentially. Headcount was up 1% from a year earlier following a period of workforce optimisation. Employee utilisation remained high at 93%, while annual voluntary attrition stood at 14%.
Managed Services remained Accenture's largest business segment, generating $9.4 billion in quarterly revenue, marginally ahead of Consulting at $9.3 billion. Among industry groups, Products contributed the highest revenue at $5.7 billion, followed by health & public service at $3.8 billion and Financial Services at $3.5 billion.
The Americas continued to be Accenture's largest market, contributing $9.1 billion in quarterly revenue. Europe, the Middle East and Africa generated $6.9 billion, while Asia-Pacific accounted for $2.7 billion.
Cybersecurity has emerged as a powerhouse for Accenture, building a $10 billion business on almost a decade of organic and inorganic growth with a 35% CAGR.
The company said it continues to invest aggressively in AI and cybersecurity. It expects bookings from key AI and data ecosystem partners to more than double this fiscal year and recently announced acquisitions of cybersecurity firms Dragos, runZero and NetRise. Accenture also raised its acquisition spending target to $9 billion, citing a strong pipeline of opportunities in high-growth technology segments.
