Accenture plc shares ACN remained under pressure on Monday as Wall Street analysts lowered expectations following the company’s disappointing fiscal third-quarter report.
The stock fell 7.1% to $118.88, extending a sharp decline that began after earnings were released last week.
Shares had already dropped 18% on Thursday after Accenture reported quarterly results and announced a series of acquisitions aimed at expanding its cybersecurity business.
The stock ended the week down nearly 25%, marking its worst weekly performance on record.
Among the latest analyst moves, TD Cowen’s Bryan Bergin downgraded Accenture to Hold from Buy and slashed his price target to $150 from $258.
“Our call for durability before potential recovery was wrong,” Bergin wrote, “and sustaining the positive rating doesn’t have a clear rationale as numbers go the wrong way.”
Bergin noted that investor concerns had initially centered on the potential disruption posed by artificial intelligence.
However, the latest earnings report prompted another round of estimate reductions and intensified concerns about the company’s growth trajectory.
Bookings weakness raises concerns about growth outlook
A key source of concern was Accenture’s bookings performance. Bergin highlighted a 3% decline in bookings from the prior quarter, writing that the contraction “was not on our bingo card.”
Although he believed consensus expectations had been too high, he had still anticipated “modest growth.”
Management attributed part of the weakness to several deals being pushed into fiscal 2027.
However, Bergin argued that even after accounting for an assumed $1 billion shortfall related to delayed deals, managed services bookings would still have declined.
According to the analyst, that outcome “would have challenged investor growth views” regardless.
Bergin now sees limited near-term catalysts for the stock, arguing that Accenture’s financial profile is unlikely to recover as previously anticipated.
In the meantime, he expects the shares to remain vulnerable to headlines and continued selling pressure as AI adoption evolves.
The downgrade makes Bergin one of the more cautious analysts covering the stock.
According to FactSet data, 17 out of 30 firms rate Accenture shares Buy or Overweight, while 13 recommend holding the stock. None currently carries a Sell rating.
AI investments continue as analysts look to recovery beyond 2027
Jefferies analyst Surinder Thind also lowered his price target on Monday, cutting it to $130 from $185 while reiterating a Hold rating.
Thind cited lower revenue and earnings estimates for calendar 2027 and noted that geopolitical tensions in the Middle East, which Accenture Chief Executive Julie Sweet identified as one factor affecting results, “is putting further pressure on weak discretionary spend.”
The analyst also argued that advances in AI are reshaping the company’s addressable market.
He believes that as AI capabilities advance, the total addressable market of Accenture’s more traditional services offering “is shrinking faster than anticipated, especially among its larger, more sophisticated clients.”
Despite the near-term challenges, Accenture continues to invest heavily in artificial intelligence.
The company has partnerships with AI leaders, including OpenAI and Anthropic, and has been developing agentic AI offerings for clients.
RBC Capital maintained an Outperform rating on the stock while lowering its price target to $175 from $253.
The firm cited macroeconomic pressures, including a $100 million headwind from the Middle East conflict, longer decision cycles in Europe, and delayed managed services deals.
RBC noted that Accenture initiated 100 new advanced AI projects during the third fiscal quarter and expects growth to accelerate as federal headwinds ease, delayed deals begin contributing to revenue, and AI bookings convert into sales.
The firm also said Accenture’s roughly $9 billion in operational technology cybersecurity acquisitions and its Accenture Edge platform are expected to contribute modestly in fiscal 2027 and could establish higher-growth opportunities beginning in fiscal 2028.
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