/Accenture%20plc%20logo%20on%20devices-by%20Mojahid%20Mottakin%20via%20Shutterstock.jpg)
The Department of Government Efficiency (DOGE), led by billionaire Elon Musk, is rolling out aggressive measures to slash spending and shrink the federal workforce. As a result, consultancy firm Accenture (ACN) is feeling the pressure. President Donald Trump’s administration’s cost-cutting drive has caused delays and cancelations of new contracts, sending Accenture’s shares downward.
Procurement actions have slowed, creating a ripple effect that is weighing on the company’s sales and revenue. Accenture’s federal services unit contributes 8% to its global revenue and represents 16% of its Americas revenue segment. A recent federal filing disclosed the abrupt termination of an Accenture contract, one that could have brought in up to $5 million by 2027. This marks the tenth contract or subcontract canceled under the Trump administration.
Given this backdrop, let us assess whether Accenture can maintain its stability or if it will succumb to the challenges ahead.
About Accenture Stock
Accenture (ACN), based in Dublin, Ireland, is a global powerhouse in professional services. It drives digital transformation, streamlines operations, and fuels revenue acceleration for clients across industries. Operating under five segments, Communications, Media & Technology, Financial Services, Health & Public Service, Products, and Resources, the company commands a market cap of $193 billion, reflecting its formidable presence in the industry.
Over the past 52 weeks, ACN stock has declined 7.4%.
From a valuation perspective, ACN trades at 24.2 times forward earnings and 2.96 times sales. These figures represent a premium over industry averages but signal a rare discount when compared to ACN’s five-year historical metrics.
Accenture Surpasses Q4 Estimates
The consulting powerhouse reported its fiscal 2025 second-quarter results on March 20, exceeding analysts’ expectations. Revenue climbed to $16.66 billion, edging past estimates of $16.62 billion and marking 5.4% year-over-year increase. New bookings for the quarter reached $20.9 billion, reflecting a 3% annual dip, while generative artificial intelligence (AI)-related bookings contributed $1.4 billion to the total.
The operating margin expanded to 13.5%, a 0.5 percentage point improvement over the prior year. EPS surged 7.2% year-over-year, reaching $2.82 and narrowly surpassing projections of $2.81. Free cash flow experienced a 34.7% jump, reaching $2.68 billion.
Looking ahead, the company has adjusted its fiscal 2025 revenue growth forecast to a range of 5% to 7%, up from the earlier guidance of 4% to 7%. Confidence in its trajectory also led to an upward revision of fiscal-year earnings projections, now expected between $12.55 and $12.79 per share, compared to the prior range of $12.43 to $12.79.
Analysts monitoring Accenture anticipate EPS to increase by 6.4% year-over-year to $12.71 for the current fiscal year, before rising by another 6.5% to $13.53 in fiscal 2026.
What Do Analysts Expect for Accenture Stock?t.
Analysts continue to favor ACN, giving it a consensus rating of “Moderate Buy.” Of the 24 analysts covering the stock, 16 advocate a “Strong Buy,” one recommends a “Moderate Buy,” and seven suggest “Hold.”
The average price target of $369 represents potential upside of 20%, while the Street-high target of $415 suggests an even greater leap of 33% from current levels.
