Accenture has reported losses in sales and revenue for its federal services business unit, citing uncertainty due to the Trump administration’s efforts to operate the government more efficiently.
The company’s chair and CEO, Julie Sweet, stated that the new administration aims to run the federal government more efficiently, which has resulted in slowed procurement actions and negatively impacted Accenture Federal Services’ sales and revenue.
Accenture Federal Services provides services like national security, defense, safety, civilian, and public and military health. The General Services Administration has instructed all federal agencies to review their contracts with the 10 highest-paid consulting firms, including Accenture Federal Services, and terminate non-mission critical contracts.
Despite facing uncertainty, Sweet said Accenture is well-positioned to help the federal government achieve efficiency due to its experience working with both federal and commercial clients. The company believes its work on federal projects has already driven efficiency.
Meanwhile, President Donald Trump’s executive order created the Department of Government Efficiency to boost efficiency and productivity within the federal government.
In a separate story, retail behemoths Walmart and Amazon are doubling down on technology to enhance operational efficiency. Both companies are leveraging artificial intelligence (AI) in various ways, including customer engagement and automation for Amazon, and merchant efficiency and product sourcing for Walmart.
Amazon is also exploring new marketplaces, such as used cars, while Walmart is expanding its logistics capabilities through a new brokerage program.
Source: https://www.pymnts.com/earnings/2025/accenture-says-it-lost-sales-amid-government-efficiency-effort