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Accenture Lowers Top End of Revenue Growth Outlook; Announces Cybersecurity Deals Worth $4.18 Billion

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Accenture Lowers Top End of Revenue Growth Outlook; Announces Cybersecurity Deals Worth $4.18 Billion

Accenture (ACN) trimmed the top end of its full-year revenue growth outlook on Thursday as its sales fell short of market expectations in the fiscal third quarter, while the consulting firm announced three acquisition deals worth about $4.18 billion to expand its cybersecurity capabilities.

Revenue is now anticipated to increase by 3% to 4% in local currency for fiscal 2026, reflecting a lower top end versus the previous guidance for a 5% rise.

For the ongoing three-month period, the company projects revenue to come in between $17.75 billion and $18.4 billion, with a foreign-exchange headwind of about 0.5%. The current consensus on FactSet is for $18.48 billion. In local currency terms, the outlook represents a growth range of 1% to 5%.

Revenue improved 6% year over year to $18.72 billion for the quarter ended May, trailing the Street's view for $18.78 billion. The topline increased 3% in local currency.

Accenture shares fell 15% in the most recent premarket activity.

In a separate statement, Accenture said it has agreed to acquire a majority stake in Dragos and full ownership of runZero and NetRise in a deal with a combined enterprise value of about $4.18 billion. Accenture said the acquisitions significantly expand its position in the broader operational technology cybersecurity market.

Dragos, runZero and NetRise are estimated to generate about $208 million in annual recurring revenue as of June, representing annual growth of 53%. Accenture said the deals are expected to be initially dilutive but accretive to earnings per share and free cash flow over time.

"Our cybersecurity practice is growing by double-digits and has a strong track record of leveraging inorganic opportunity to fuel organic growth," Accenture Chief Executive Julie Sweet said. "We are confident Dragos' differentiated (operational technology) platform will accelerate our growth in the critical infrastructure and industrial operations markets, driving long-term shareholder value through scaled adoption of advanced cybersecurity capabilities."

The transactions, which require regulatory approval, are expected to complete in August or September, according to Accenture.

Accenture's earnings rose to $3.80 a share in the third quarter from $3.49 the year before, ahead of the average analyst estimate of $3.69. For the ongoing fiscal year, the firm now expects adjusted EPS of $13.78 to $13.90, reflecting a higher bottom end compared with the prior guidance of $13.65. The Street is looking for non-GAAP EPS of $13.86.

Consulting revenue increased 4% to $9.33 billion, while sales in the managed services division gained 8% to $9.39 billion. New bookings decreased 2% to $19.32 billion, comprising $10.26 billion in consulting and $9.06 billion in managed services.

"Demand for large-scale reinvention remains strong - 104 quarterly client bookings of $100 million or more year-to-date, up 13% - and we are seeing more large-scale AI transformation programs, while executing our strategy to capture new areas of growth," Sweet said.

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