The Accenture sign was painted on August 7, 2024 in Warsaw, Poland.
Leksander Kalka | nuphoto | Getty Images
Stocks Accenture It slides on Thursday after consulting firms said tougher federal spending efforts have begun weighing revenues.
Accenture’s CEO fell nearly 8% in a second-quarter revenue call after a recent review, after the company’s federal services business lost its contract with the US government.
“The federal government accounted for around 8% of global revenue in 2024 and 16% of US revenue in the US. As you know, the new administration has a clear goal of running the federal government more efficiently. In this process, many new procurement measures slowed, and many new procurement measures had a negative impact on sales and revenue.
Accenture is one of the first corporate giants to be hit by the Trump administration’s so-called government efficiency. This is an effort led by billionaire Elon Musk to consolidate office space with reduced federal agencies.
Sweet Added Accenture’s federal services have been affected by guidance from the US General Services Agency to all federal agencies, confirming contracts with the best paid consulting companies contracted with the US government, and terminated contracts that are not considered critical of the relevant agencies.
“We continue to believe that work for federal clients is mission-critical, but as government priorities evolve and these assessments unfold, we expect continuous uncertainty,” Sweet said.
“We have seen an uptick in what has already been significant uncertainty in the global economic and geopolitical environment, marking a shift from the first quarter of December 2025 revenue report, while at the same time we believe that the fundamentals of our industry remain strong.”
Other consulting companies sympathized. Booze Allen Hamilton The shares slid 7.5% on Thursday.
Accenture stocks have plummeted 22% over the past month, cutting around 15% of shares a year.
