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Accenture's Bookings Decline Clouds Visibility Into Fiscal 2027, Morgan Stanley Says

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Accenture's (ACN) bookings decline challenges visibility into fiscal 2027, with weakness focused in Managed Services push-outs, while acquisitions are becoming expensive due to rising valuations, Morgan Stanley said Monday.

Morgan Stanley said the Managed Services bookings decline of 15% may be partly explained by AI continuing to crowd out IT spend. Investors will need to see improved Managed Services bookings to gain confidence that the push-outs were idiosyncratic rather than a sign of softening demand for Accenture's services, the brokerage added.

The investment firm views Accenture as well positioned for an eventual recovery, given its scale, enterprise relationships, and exposure to large transformational programs, according to the note.

Morgan Stanley lowered its fiscal 2026 revenue forecast to $73.54 billion from $74.41 billion, as it expects weaker constant currency growth of 3.7% versus 4.5%, due to direct and indirect impacts from the Middle East conflict, as well as large services projects being pushed into fiscal 2027.

The brokerage expects fiscal 2026 EPS of $13.89, compared with its prior estimate of $14.05, and fiscal 2027 EPS of $14.44, the note added.

Morgan Stanley kept an equal weight rating on Accenture and lowered the price target to $130 from $177.

Price: $122.80, Change: $-5.18, Percent Change: -4.05%

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