Accenture’s shares fell by 7.3% after the company revealed that government spending cuts are affecting its revenues. As part of the Trump administration’s “Department of Government Efficiency” initiative, federal agencies are reviewing their contracts with top-paid consulting firms, leading to potential contract losses for Accenture.
The US government’s efforts to run more efficiently have slowed new procurement actions, negatively impacting Accenture’s sales and revenue. The company’s Federal Services business has lost contracts due to recent reviews, with the majority of its revenue coming from federal clients. While Accenture believes its work is mission-critical, it anticipates ongoing uncertainty as government priorities evolve.
The news sent shares plummeting 22.9% over the past month, taking the stock down nearly 14.5% year-to-date. Booz Allen Hamilton also fell in sympathy, with its shares slipping 8.1%. The company’s better-than-expected quarterly earnings and revenue results were unable to offset investors’ concerns about the impact of government spending cuts on Accenture’s business.
Source: https://www.cnbc.com/2025/03/20/accenture-is-doges-first-corporate-casualty-as-shares-dive-on-warning-contracts-will-be-cut.html