Accenture Plc is anticipating slower growth, even as artificial intelligence (AI) garners increasing interest from clients. CEO Julie Sweet acknowledged that while AI has quickly gained attention among CEOs and boards, its actual implementation and value delivery have been limited, particularly outside digital-native companies. As a result, Accenture is undertaking job cuts, citing a lack of viable reskilling options for some roles. The company remains largely unaffected by the H-1B visa changes under the Trump administration, as only 5% of its US workforce holds such visas.
Accenture reported $69.7 billion in revenue for FY24, a 7% increase, outpacing the cumulative revenue growth of India’s top 10 IT firms. Despite this, it has forecast slower revenue growth of 2–5% in FY26. During June–August, Accenture cut 11,000 jobs and launched a six-month optimization plan with $865 million in severance and impairment costs, aiming to save over $1 billion for reinvestment.
Meanwhile, Gen AI bookings reached $5.9 billion for the year, with total bookings since September 2023 amounting to $8.9 billion. Accenture’s cautious outlook raises concerns for major Indian IT companies ahead of their upcoming earnings reports.