Accenture shares dropped 10% in pre-market trading Thursday after the consulting firm reported fiscal third-quarter results. The decline puts the stock on course for its lowest level in more than six years as investors react to the earnings release.
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Accenture plunges 10% in pre-market, on track for 6-year low
Accenture shares dropped 10% in pre-market trading Thursday, heading toward their lowest level in more than six years after the consulting giant reported fiscal third-quarter results.
The decline puts the stock on track for its worst single-day drop since at least 2020, erasing billions in market value. Specific revenue and earnings figures from the quarter were not immediately disclosed, but the magnitude of the selloff suggests results fell short of Wall Street expectations.
The Q3 report comes as the IT services sector faces pressure from rising trade costs and cautious enterprise spending. Import prices rose 1.9% in May, with fuel and lubricants jumping 12.5%, squeezing margins for consulting firms that rely on global delivery networks. The Federal Reserve, expected to hold its benchmark rate at 3.50% to 3.75% at its meeting concluding Thursday, adds further uncertainty for corporate technology budgets.
Accenture, a bellwether for enterprise IT spending, provides technology consulting and outsourcing services to a broad range of industries. Its results are closely watched as a proxy for corporate investment in digital transformation and cloud migration. A miss signals that companies may be pulling back on discretionary technology projects as they navigate higher input costs and an uncertain rate environment.
The stock's slide weighed on IT services peers in pre-market trading. Investors will focus on the company's earnings call later Thursday for management's updated guidance and commentary on consulting demand and deal pipelines. The call will determine whether the selloff extends into regular trading or whether buyers step in at these levels.
This article is for informational purposes only and does not constitute investment advice.
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