Accenture Posts Higher Sales, Shrugging Off DOGE Concerns

Core Insights - Accenture reported higher fourth-quarter sales, reaching $17.6 billion, a 7% increase from the previous year, surpassing Wall Street's expectation of $17.38 billion [3] - The company experienced a net income of $2.25 per share, a 15% decline year-over-year, while adjusted earnings rose by 9% to $3.03, exceeding analyst expectations of $2.98 [2][3] - Concerns regarding federal government cuts impacting revenue may be overstated, as the government accounts for only 8% of Accenture's revenue [4] Financial Performance - Accenture's fourth-quarter sales were $17.6 billion, up 7% from the previous year [3] - New bookings for the quarter totaled $21.3 billion [3] - The company guided for 2026 revenue growth of 2% to 5%, with adjusted earnings projected between $13.52 and $13.90 per share [6] Market Sentiment - Accenture's shares have declined by 32% this year, primarily due to investor concerns about the impact of federal government cuts on consulting revenue [3] - Analysts from Stifel noted that fears regarding AI potentially harming Accenture's business could be misplaced, as technological changes often lead to increased revenue for service providers with relevant skills [4] Generative AI - Accenture reported generative AI bookings of $1.8 billion for the quarter, indicating a growing focus on this area [5]