Accenture PLC (NYSE:ACN) shares fell almost 15% on Thursday after the consulting and technology services company lowered its fiscal 2026 revenue growth outlook, overshadowing third-quarter earnings that topped analyst expectations.
The company now expects fiscal 2026 revenue growth of 3% to 4% in local currency, down from its previous forecast of 3% to 5%.
Excluding an estimated 1% impact from its US federal business, the company expects revenue growth of 4% to 5%.
For the quarter ended May 31, Accenture reported adjusted earnings per share of $3.80, exceeding analysts' consensus estimate of $3.72.
Revenue rose 6% year over year to $18.7 billion but came in slightly below Wall Street expectations of $18.78 billion.
The company generated $19.3 billion in new bookings during the quarter, compared with $19.7 billion a year earlier, while operating margin expanded 20 basis points to 17.0%.
Free cash flow totaled $3.6 billion, and Accenture returned $2.2 billion to shareholders through share repurchases and dividends.
“Accenture delivered a strong third-quarter, with broad-based revenue growth, a 9% increase in EPS, and $8.2 billion returned to shareholders year-to-date,” the company’s CEO Julie Sweet said in a statement.
Sweet said demand for large-scale reinvention projects remains strong, noting that Accenture recorded 104 client bookings valued at $100 million or more year-to-date, up 13%, and is seeing an increase in large-scale artificial intelligence transformation programs.