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Accenture Stock Plummets 8% Amid Government Spending Cuts

3/20/2025

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Summary

Story summary

Accenture's stock dropped over 8% following Q2 earnings of $2.82 EPS and $16.66 billion revenue, missing analyst expectations.
CEO Julie Sweet attributed sales declines to government spending cuts influenced by Elon Musk's Department of Government Efficiency.
Cancellations and slowdowns in U.S. government contracts, accounting for 8% of revenue, threaten future growth.
Despite these challenges, Accenture increased its full-year revenue growth forecast to 5% and EPS guidance to $12.55.

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Story summary

Accenture's stock dropped over 8% following Q2 earnings of $2.82 EPS and $16.66 billion revenue, missing analyst expectations.
CEO Julie Sweet attributed sales declines to government spending cuts influenced by Elon Musk's Department of Government Efficiency.
Cancellations and slowdowns in U.S. government contracts, accounting for 8% of revenue, threaten future growth.
Despite these challenges, Accenture increased its full-year revenue growth forecast to 5% and EPS guidance to $12.55.