Accenture (NYSE:ACN) shares fell more than 7% Thursday after CEO Julie Sweet flagged pressure on revenue due to the Trump administration's cost-cutting agenda.

Speaking on the company's earnings call, Sweet said a slowdown in new government procurement efforts driven by the Department of Government Efficiency, or DOGE was weighing on sales. Many new procurement actions have slowed, which is negatively impacting our sales and revenue, she said.

BMO Capital Markets held its Market Perform rating but trimmed its price target to $355 from $370. Analysts led by Keith Bachman cited broad challenges in IT services and noted that client uncertainty, particularly in U.S. federal business, is rising. They also flagged a weak bookings performance and said fiscal second-half comparisons will be tough.

Mizuho analysts noted Accenture's 8.5% local currency revenue growth in the fiscal second quarter landed near the top of guidance. However, flat new bookings growth raised questions, especially with easier comparisons and ongoing macro volatility. Still, generative AI demand is gaining steam, with $1.4 billion in new bookings in the quarter, up from $1.2 billion previously.

Accenture's stock was flat in premarket trading Friday.