Accenture (ACN) stock was the biggest decliner in the S&P 500 soon after the opening bell Friday as the professional services firm’s fiscal third-quarter bookings fell short of analysts’ estimates.
The company reported earnings per share (EPS) of $3.49 on revenue that grew 8% year-over-year to $17.73 billion. Analysts had expected $3.29 and $17.33 billion, respectively, according to estimates compiled by Visible Alpha.
However, Accenture’s $19.7 billion in bookings fell well short of the $21.5 billion analyst consensus. Both consulting and managed services bookings were below what analysts had forecast.
Accenture lifted the bottom end of its full-year revenue forecast again, now projecting 6% to 7% growth from fiscal 2024, and also raised its EPS estimate to $12.77 to $12.89. Last quarter, Accenture raised the lower end of its fiscal 2025 revenue growth and EPS ranges, forecasting 5% to 7% sales growth and EPS of $12.55 to $12.79.
Accenture also announced the formation of a “Reinvention Services” segment, which will consist of its new, AI-focused products. Manish Sharma, currently Accenture’s CEO for the Americas, will lead the new unit as the company’s first Chief Services Officer once the shift goes into effect Sept. 1.
Despite the solid top- and bottom-line results, Accenture shares sank 7% shortly after markets opened. They have lost nearly a fifth of their value since the start of the year.
UPDATE—This article has been updated with the latest share price information and Accenture’s bookings and its new “Reinvention Services” division.
