Why Accenture Shares Are Falling - VRGyani News


Tuesday, March 26, 2024

Why Accenture Shares Are Falling

26 March 2024: Accenture's share price decline is likely due to a combination of factors, primarily stemming from their recent earnings report and revised guidance:

  1. Lower-than-Expected Revenue Growth:  In March 2024, Accenture reported a slowdown in sales and new bookings. They also lowered their revenue growth expectations for the current quarter and the entire fiscal year. Investors often react negatively to missed expectations.
  2. Uncertain Economic Environment:  Accenture's CEO attributed the slowdown to an "uncertain macro environment". This could indicate concerns about a potential recession or economic downturn, leading businesses to cut back on IT spending.
  3. Slowdown in New Business:   The company reported a decrease in new client contracts, suggesting that businesses might be delaying or reducing IT consulting projects due to economic uncertainty.

These factors combined likely caused investors to lose confidence in Accenture's short-term growth prospects, leading to a sell-off and a decline in the share price.

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