Accenture Posts $2.77 EPS, Cuts Revenue Growth to 1%-3%, Shares Plunge

Accenture reported its fiscal second-quarter earnings, revealing a diluted EPS of $2.63, a 10% increase year-over-year, and an adjusted diluted EPS of $2.77, a 3% increase year-over-year, surpassing the forecast of $2.66. However, its revenue of $15.8 billion, flat year-over-year, fell slightly short of the expected $15.84 billion. Despite beating earnings estimates, Accenture's stock fell after the company, led by chair and CEO Julie Sweet, lowered its fiscal-year revenue guidance, citing macroeconomic uncertainties and a slowdown in the consulting market. The revised revenue growth outlook for fiscal 2024 is now set at 1% to 3% in local currency. This adjustment reflects the challenges Accenture faces, including reduced spending from financial services customers on its software. The company's market capitalization stands at $238.53 billion, and its shares experienced the most significant drop in four years following the announcement. Additionally, Accenture recorded new bookings of $21.6 billion, marking the second highest quarter in its history.