Accenture predicts that sluggish IT investment will cause revenue in the second quarter to fall short of projections

 Accenture predicts that sluggish IT investment will cause revenue in the second quarter to fall short of projections

Accenture has acknowledged that budget-related decisions are made slowly, especially at IT and media organizations.

Accenture projects $15.40 billion to $16.00 billion in sales.

Accenture, a supplier of IT services, said on Tuesday that second-quarter revenue will fall short of Wall Street projections due to customer caution and ongoing global uncertainties.

The company's stock dropped 3% in pre-bell trading. They have outperformed the benchmark S&P 500 index so far this year, having risen more than 28 percent.

Analysts predict that short-term expenditure on IT services will continue to be low since companies typically announce their yearly budgets after February. Accenture has acknowledged that budget-related decisions are made slowly, especially at IT and media organizations.

October saw lower-than-expected quarterly results from India's largest IT services provider, Tata Consultancy Services, and a lower-than-expected annual revenue estimate from Infosys due to customers' continued reluctance to spend on discretionary projects. These businesses compete with Accenture in the outsourcing market.

Accenture projects $15.40 billion to $16.00 billion in sales. LSEG surveyed analysts, and they predicted $16.29 billion in sales.

Its first quarter concluded on November 30th saw a 3% increase in sales to $16.2 billion.