On Thursday, Accenture, an IT services company, revised its revenue growth projection for the 2024 fiscal year due to uncertainties in the economy causing clients to reduce expenditure on consulting services. The company’s shares experienced a 5 percent decline in premarket trading. Previously, Accenture anticipated annual revenue growth to be between 2 and 5 percent, but they revised it to between 1 and 3 percent.
The consultancy has been dealing with stagnant demand for its IT and consultancy offerings due to the combination of high interest rates and an unpredictable economic atmosphere that encourages clients to limit spending. Commenting on post-pandemic spending habits, industry experts noted a slowdown in growth over the last one and half years, following high spending levels during COVID-19 crisis.
Moreover, Accenture’s revenue forecast for the third quarter is between $16.25 billion and $16.85 billion, a figure slightly lower than the LSEG’s $17.01 billion estimate, as per Reuters’ report.