Accenture is the first corporate victim of Doge, shares diving under contract warning contracts

Shares on Accent It slides on Thursday after the consulting firm said the efforts to tighten federal expenses began to weigh their revenue.

The shares collapsed by 7.3%after Accenture CEO said that, with fiscal profit from the second quarter, he called that the company’s federal business had lost contracts with the US government after recent reviews.

“The federal presented approximately 8% of our global revenue and 16% of the revenue from America in the financial 2024. As you know, the new administration has a clear goal of managing the federal government more effectively. During this process, many new public procurement actions have been delayed, which has a negative effect on our sales and revenue.

Accenture is among the first of the US corporate giants to be affected by the so -called Ministry of Efficiency of the Trump Administration, effort led by billionaire Elon Musk to decreases federal agencies And they consolidate their office space.

Sweet said that Accenture’s federal services were also affected by the US management of all common services of all federal agencies to review their contracts with the first 10 highest paid consulting companies contracting with the US government and then terminated the contracts that are not considered critical.

“While we continue to believe that our work for federal clients is critical to the mission, we predict constant uncertainty when the government’s priorities develop and these evaluations develop,” said Sweet.

“We see an increased level of what was already a significant uncertainty in the global economic and geopolitical environment, noting a change from our report on the first quarter of 2025 funding,” added Sweet. “At the same time, we believe that the foundations of our industry remain strong.”

Investors’ concern about risks linked to the US government delay, exceeds better than expected of the three-month profit results and revenue results published before the market opening on Thursday. The company reported a $ 2.82 profit per share at $ 16.66 billion revenue, only higher than $ 2.81 per share for $ 16.62 billion revenue.

Accenture’s shares have been submerged by 22.9% in the last month, reducing the shares so far.

Shares of a consulting firm Booz Allen Hamilton He slid 8.1% on Thursday in sympathy.