Accenture's earnings report is out; the company delivered fourth-quarter revenue of $17.6 billion, beating Wall Street forecasts of $17.36 billion. The consulting giant also signed new contracts worth $21.3 billion. Thus, affirming firm demand for its services as worldwide spending on technology grapples with challenges.
The Dublin-based company announced a six-month, $865 million restructuring program aimed at rebalancing operations to accelerate digital and AI adoption. It involves severance expenses and targeted divestitures, of which $615 million was already accounted for in Q4, and a further $250 million would come in during the November quarter. Accenture stated the savings would be redirected to employee training, operational effectiveness, and talent building.
As Accenture continues to recruit, it is also reducing jobs that are associated with obsolete skill sets. The company's dependence on skilled foreign labor is now in doubt after U.S. President Donald Trump suggested a $100,000 fee for H-1B visas. Accenture was one of the top 25 U.S. employers participating in the program, receiving approval for 1,568 H-1B beneficiaries during the first half of 2025.
Accenture predicted 2%-5% revenue growth in fiscal 2026, lower than the market's expectation of 5.3%. While facing short-term headwinds due to restructuring expenses and policy risks, the firm is well on its way to becoming a top player in AI consulting. Digital transformation remains a top priority for enterprises worldwide. The company is investing in upskilling and AI-based productivity tools to enhance its competitive advantage in a global market.
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