Accenture's Stock Price A Prime Entry Point For Investors, Says Goldman Sachs Analyst

Core Viewpoint - Goldman Sachs analyst James Schneider maintains a Buy rating on Accenture plc, while lowering the price forecast to $415 from$430 [1] Financial Performance - Accenture reported second-quarter 2025 earnings of $2.82 per share, slightly above the consensus estimate of$2.81 [1] - The company achieved sales of $16.66 billion, nearly in line with the consensus of$16.62 billion and management guidance of $16.2 billion to$16.8 billion [1] Industry Context - Schneider notes that Accenture's results are slightly negative for the IT Services sector, indicating rising uncertainty in the discretionary environment, although the underlying business shows gradual improvement [2] - The cautious comments from management regarding the current demand environment reflect increased uncertainty due to recent macroeconomic events [3] Management Insights - Management has indicated that increased use of subcontractors is the primary reason for near-term margin pressure, despite a strong internal utilization rate of 91% [5] - The start of several significant new outsourcing contracts during the quarter may also contribute to additional margin pressure [5] Future Outlook - Despite current concerns, the increased revenue guidance is viewed as a significant positive development for Accenture [4] - The analyst believes that Accenture is well-positioned to benefit from strong secular tailwinds once cyclical challenges subside, making the current stock price an attractive entry point for investors [4]