Accenture stock sank 18% after reporting strong quarterly results but cutting full-year growth guidance, raising questions about whether AI is starting to reduce demand for consulting services.

What happened

Accenture shares dropped about 18% on Thursday after the company reported fiscal third-quarter earnings per share up 9% year over year to $3.80 and revenue growth of 6% to $18.7 billion（約3兆円）. However, the company lowered its full-year revenue growth guidance to 3% to 4% in local currency, down from the 3% to 5% range given three months earlier, and new bookings fell to $19.3 billion（約3.1兆円） from $19.7 billion（約3.2兆円） a year earlier.

Why it matters

The sell-off reflects investor concern that AI tools may reduce the need for consulting work on software development and systems integration—areas that have historically driven Accenture's revenue. Consulting revenue grew just 1% in local currency last quarter, suggesting demand is softening. At the same time, the company announced it would spend about $4.18 billion（約6700億円） to acquire cybersecurity company Dragos and two smaller security firms, a major bet on a new market while organic growth cools.

What to watch

Accenture's new bookings figure is the most direct signal of future revenue momentum; management expects near-term demand softening, with some drag from U.S. federal cost-cutting that it anticipates will ease by the current quarter. The company argues AI will ultimately be a tailwind, saying clients need help putting AI into operations at scale, but bookings trending higher again would be key reassurance to investors.