Accenture Shares Sink 18% as Weak Outlook Deepens AI Disruption Fears

Shares of tech major Accenture plunged 18% on June 11 in a massive selloff that was triggered after the Dublin-headquartered company announced a cut in its revenue outlook due to the US-Iran conflict and AI (artificial intelligence) disruption.

The decline in the share price was the worst on record and took Accenture shares to their lowest level since August 2017 at $128 a piece.

Accenture cut its revenue forecasts when it announced its earnings for the quarter ending in May 2026. The company now expects full-year revenue growth of no more than 4%, compared with previous guidance of 3-5%.

The company said that new bookings fell to $19.3 billion in the three months to the end of May, a decline of 3% in local currency terms compared with the same period last year.

The IT consulting firm took a $400 million hit to its Middle East business from the conflict in the third quarter and warned of “more impact in the fourth”.

In a post-earnings call, Accenture CEO Julie Sweet said that she blamed the disappointing figures in part on the war in the Middle East, which had hit revenue “by $100 million more than expected” in the most recent quarter.

The war had also led to slower decision-making by clients elsewhere, she added.

“The indirect impact really started in the last few weeks,” Sweet said. “It's not clear how fast things will change, particularly because ⁠some of the industries are dealing with kind of longer-term issues.”

On a positive note, Sweet said that Accenture was continuing to win business from companies seeking advice on adopting AI, even as investors fear that the emerging technology will allow clients to cut consultants out or that it will create new competition from AI start-ups.

Accenture buys majority stake in cyber company Dragos

During the earnings call, Accenture also announced that it was acquiring a majority stake in Dragos and buying two other security firms outright, making a $4 billion push into industrial cybersecurity.

The transactions also include runZero, a firm that scans companies for vulnerabilities, and software supply-chain security firm NetRise, one of the largest players in the operational technology security market.

The company said that the deals are expected to close in August or September pending regulatory approvals. They will add a combined annual recurring revenue of $208 million to Accenture’s offerings.

Accenture announced that it planned to spend $9 billion on acquisitions this ​year, up from $5 ⁠billion, as it leans harder into AI, cloud and data and areas where clients are concentrating spending on large projects tied to cost savings and growth.

Revised salary structure

Accenture has revised its salary increase structure for the June compensation cycle, according to a report. The latest revision will impact the company’s global workforce of more than 780,000 employees.

According to an internal memo, employees will now receive 50% of their approved salary hike as a one-time lumpsum payout in June, while the remaining 50% will get added to their base pay.

The company added that the promotion-related salary hikes will continue to be delivered entirely through base pay, while lump sum payments remain separate from annual bonuses awarded in December.

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