By Dean Seal
Shares of Accenture slipped despite strong second-quarter results after the consultant said revenue is being dented by the Trump administration's overhaul of the federal government.
The stock was down 7.1% at $301.56 in midday trading. Shares fell as much as 10% earlier in the session, flirting with its largest single-day decrease since 2013.
Chief Executive Julie Sweet said Thursday on a call with analysts that a slowdown in government procurement actions since Trump's inauguration have negatively impacted sales.
Federal agencies have also been instructed to review contracts with their 10 highest-paid consulting firms, which includes Accenture's federal services business, and terminate contracts that aren't deemed mission-critical, the CEO said.
"While we continue to believe our work for federal clients is mission-critical, we anticipate ongoing uncertainty as the government's priorities evolve and these assessments unfold," she said.
The comments came after Accenture beat second-quarter earnings and sales forecasts and raised the low-ends of its revenue and profit guidance.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
March 20, 2025 12:34 ET (16:34 GMT)
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