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.
Accenture Q2 results
The company's revenue rose 8.3% to $18.04 billion for the second quarter, beating estimates of $17.84 billion.
Accenture reported a profit of $2.93 per share, compared with $2.82 per share in the same quarter last year.
New bookings, a metric that measures future revenue based on contracts, rose 6% to $22.1 billion in the second quarter.
