Accenture forecasts first-quarter revenue below estimates
IT services firm Accenture forecast first-quarter revenue below Wall Street targets on Thursday, as a tough economy forces clients to defer projects and scale down the scope of deals.
The U.S. Federal Reserve's forecast earlier this month that it would leave interest rates elevated for longer than widely expected, has added to concerns that enterprise spending will take longer-than-expected to return to healthy levels.
Indian IT services giant Infosys halved its full-year revenue forecast in July, citing delayed decision-making on future projects from clients, while Tata Consultancy Services also flagged soft demand.
Accenture expects revenue in the range of $15.85 billion to $16.45 billion in the first quarter. Analysts polled by LSEG forecast revenue of $16.43 billion.
Accenture revenue rose 4% to $16 billion in the fourth quarter ended Aug. 31, compared with estimates of $16.08 billion.
