Accenture signals more pain for IT industry with disappointing forecast

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Accenture fanned concerns about dwindling IT spending on Thursday with a quarterly revenue forecast that was below Wall Street estimates, sending its shares down more than 5%.

CEO Julie Sweet said clients were "holding back on small deals" in the face of an uncertain economic outlook, mirroring remarks from Cognizant Technology SolutionsAccenture forecast current-quarter revenue in the range of $15.75 billion to $16.35 billion. Analysts on average expect revenue of $16.35 billion, according to Refinitiv data.

The company blamed the weakness on its business catering to the tech, media and communications industries, which have sharply dialed back spending in recent months to cope with slowing growth. Revenue for that group fell 8% in the third quarter. North America - Accenture's biggest market - also performed poorly in the March to May period, with revenue growth slowing there to a near three-year low of about 2%.

 

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