Accenture (NYSE:ACN) shares fell sharply after the technology consulting giant reported fiscal third-quarter earnings that exceeded expectations but delivered weaker-than-anticipated revenue and bookings, while also trimming its full-year growth outlook.
The stock dropped 11% to around 138 following the results, extending a difficult year for shareholders after the shares had already fallen roughly 40% in 2026 amid concerns over slowing demand and the impact of artificial intelligence on traditional consulting services.
Earnings Beat Expectations Despite Slower Revenue Growth
For the quarter ended May 31, Accenture reported adjusted earnings of $3.80 per share, up 9% from the prior year and ahead of analyst forecasts of $3.71 per share.
Revenue increased 6% year-over-year to $18.7 billion, supported in part by acquisitions, but came in below expectations of $18.8 billion.
The company said growth was held back by softer performance in its consulting operations, a business that has faced increasing scrutiny as clients reassess technology spending priorities.
Bookings Disappoint as Demand Remains Uneven
New bookings also fell short of market expectations.
Accenture reported bookings of $19.3 billion during the quarter, broadly flat from a year earlier, compared with analyst forecasts that had called for growth of approximately 7%.
The company recently announced it would no longer separately disclose artificial intelligence bookings, a metric that had been closely monitored by investors seeking evidence of AI-related demand.
Company Cuts Revenue Growth Outlook
Management lowered its fiscal 2026 revenue growth forecast, citing ongoing weakness in its U.S. federal government business.
Accenture now expects annual revenue growth of between 3% and 4%, compared with its previous projection of 3% to 5%.
The revised outlook added to investor concerns that economic uncertainty and shifting technology spending patterns may continue to weigh on growth through the remainder of the year.
Acquisitions Expand Cybersecurity Capabilities
Alongside the earnings report, Accenture announced several strategic acquisitions aimed at strengthening its cybersecurity and technology offerings.
The company revealed it has acquired a majority stake in industrial cybersecurity specialist Dragos in a transaction valued at $4.2 billion.
Accenture also disclosed the acquisition of runZero, a company focused on asset intelligence and exposure assessment solutions.
The deals form part of the firm’s broader strategy to deepen its capabilities in high-growth technology segments and offset slower demand in traditional consulting services.
AI Concerns Continue to Weigh on Sentiment
Accenture shares have faced sustained pressure throughout 2026 as investors debate how generative artificial intelligence could reshape the consulting industry.
Some market participants fear that AI-powered tools may reduce the need for labor-intensive consulting work, while many corporate customers have slowed discretionary technology spending as they evaluate AI investment strategies.
These concerns have contributed to a sharp re-rating of the stock despite continued profitability and revenue growth.
Technical Indicators Remain Weak
The stock’s recent performance has been reflected in several technical measures.
According to Investor’s Business Daily, Accenture carries a Composite Rating of 25 out of 99, well below the levels typically associated with leading growth stocks.
The shares also hold an Accumulation/Distribution Rating of E, indicating that institutional selling has outweighed buying activity in recent months.
With weaker revenue growth, softer bookings and a reduced outlook overshadowing an earnings beat, investors will be looking for signs that Accenture can reignite demand and demonstrate that its expanding AI and cybersecurity capabilities can support longer-term growth.