NEW YORK, March 10, 2026, 16:16 EDT
Accenture dropped roughly 3.7% Tuesday, trading around $201.62 late in the day, after Truist slashed its price target and flagged “possible ecosystem pressures” heading into the consulting giant’s March 19 earnings. StreetInsider.com
The timing comes with Accenture’s second-quarter results only nine days out. That’s adding urgency to a key sector doubt: are AI services bringing in sufficient new business to balance out weak partner spending and softness in legacy consulting?
Truist’s Arvind Ramnani dropped his price target on Accenture to $260, down from $317, though he’s sticking with his Buy call. He cited sluggish AI adoption across enterprises, adding that fiscal 2027 projections could face trouble if tech partners in Accenture’s ecosystem pull back on spending—or if AI simply replaces current business rather than boosting it.
Accenture slid 1.2% by late Tuesday, a steeper drop than IBM, while Cognizant fared worse, losing around 2.6%. The move put Accenture under heavier strain than certain other IT services names.
Dealmaking has been Accenture’s response to those concerns. On March 3, the company announced it would release results on March 19. That same day, Reuters reported Accenture reached a $1.2 billion cash agreement to acquire Ziff Davis’s Connectivity segment—home to Ookla’s Speedtest and the Downdetector outage tracker.
“With the Ookla portfolio, we will offer end-to-end network intelligence services essential for AI-based transformation,” said Manish Sharma, Accenture’s chief strategy and services officer, when the deal was announced. The acquisition brings in network data and analytics assets to back Accenture’s push for AI-driven client work. Reuters
Accenture’s most recent quarterly results sent a muddled message. Back in December, Reuters noted the company topped first-quarter revenue projections thanks to robust AI services demand. However, the outlook for second-quarter revenue landed with a midpoint under what Wall Street was looking for, and Accenture pointed to choppy demand among government and public-sector customers.
That pressure hasn’t gone away. Back in March, Accenture pointed to U.S. government cost reductions as the reason for delayed and canceled contracts, noting its federal business made up roughly 8% of this year’s revenue. “Accenture’s revenue faces headwinds due to the Trump administration’s focus on federal cost cutting,” said Michael Ashley Schulman, chief investment officer at Running Point Capital at the time. Reuters
Still, some analysts aren’t dialing back expectations. Last week, TD Cowen’s Bryan Bergin pointed to steady second-quarter results and guidance, saying concerns about “AI-driven narrative pressure” might be exaggerated. He did note that it’s tough to expect a dramatic shift in sentiment from just one report. Investing.com
The next report might go either way. Bookings will be key for investors, since those signed deals signal upcoming revenue. If there’s any hint that AI is eating into legacy business faster than fresh AI projects are coming in, expect more estimate cuts after March 19.
