(Reuters) – IT services provider Accenture cut its revenue forecast for fiscal 2024 on Thursday as economic uncertainties prompted clients to cut spending on its consulting services.
The group now expects growth in its annual turnover of between 1% and 3%, compared to a previous forecast of 2% to 5%.
On Wall Street, Accenture shares fell 7.97% at 1:51 p.m. GMT.
Accenture is facing weak demand for its IT and consulting services as high interest rates dampen a sector that has seen strong growth during the COVID-19 pandemic.
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The company has cut jobs and is expected to book $450 million (€413.41 million) in severance payments for the current fiscal year, after recording $1.1 billion the previous year, when it had announced a reduction of around 19,000 jobs, or 2.5% of its workforce.
For the third quarter, Accenture forecast revenue of between $16.25 billion and $16.85 billion, below an estimate of $17.01 billion, according to LSEG data.
New bookings, a key indicator of revenue prospects, fell 2% to $21.58 billion in the second quarter, while revenue in its Communications, Media and Technology segment fell 8% year-over-year.
Accenture reported revenue of $15.80 billion, slightly below analysts’ estimates of $15.84 billion.
(Reporting by Zaheer Kachwala; French version by Dagmarah Mackos, editing by Kate Entringer)
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