Accenture Stock Drops 8% as Federal Contract Cuts Impact Revenue

Elon Musk's Department of Government Efficiency targets non-essential consulting contracts, reshaping federal spending priorities.

Accenture reported a significant revenue hit due to the cancellation of at least 10 federal contracts under the DOGE initiative.
The company's stock fell by 8% following its earnings call, where the CEO highlighted challenges from reduced federal spending.
Federal contracts accounted for 8% of Accenture's global revenue and 16% of its Americas revenue in FY 2024, underscoring the financial impact.
The U.S. General Services Administration has directed agencies to review and terminate non-critical contracts with the top 10 highest-paid consulting firms.
Despite current challenges, Accenture's CEO expressed optimism about future opportunities to assist in federal government efficiency efforts.