- Shares of Accenture tumbled about 7.3% after the consulting firm said efforts to tighten federal spending are starting to weigh on its revenues.
- Accenture is among the first of the U.S. corporate giants to get hit by the Trump administration’s so-called Department of Government Efficiency.
- “As you know, the new administration has a clear goal to run the federal government more efficiently,” Accenture CEO Julie Spellman Sweet said on an earnings call. “During this process, many new procurement actions have slowed, which is negatively impacting our sales and revenue.”
Shares of Accenture
slid Thursday after the consulting firm said efforts to tighten federal spending have begun to weigh on its revenues.
Shares tumbled 7.3% after Accenture’s chief executive officer said in a fiscal second-quarter earnings call that the company’s Federal Services business has lost contracts with the U.S. government after recent reviews.
“Federal represented approximately 8% of our global revenue and 16% of our Americas revenue in FY 2024. As you know, the new administration has a clear goal to run the federal government more efficiently. During this process, many new procurement actions have slowed, which is negatively impacting our sales and revenue,” chief executive Julie Spellman Sweet said in the Thursday call to several Wall Street analysts.
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