Why Accenture Stock Tumbled on Thursday

Core Insights - Accenture's stock fell 8% despite exceeding earnings expectations for Q2 2025, with earnings of $2.82 per share on sales of$16.7 billion compared to analyst forecasts of $2.81 per share on$16.6 billion in sales [1][2] Financial Performance - Revenue grew 5% year over year, but new bookings declined by 3%, indicating potential future revenue challenges [2] - Operating profit margin expanded by 50 basis points to 13.5%, contributing to a 7% year-over-year increase in per-share profits [2] - Free cash flow for the quarter was strong at $2.7 billion, up 35$12.55 to $12.79 per share [4] - The midpoint of the earnings guidance is slightly below Wall Street's forecast of$12.72 per share, which has negatively impacted investor sentiment [5] - Accenture's market capitalization stands at $203 billion, with a valuation of over 20 times trailing free cash flow and more than 26 times trailing earnings, while long-term earnings growth is forecasted at only about 9% annually [6]