Accenture is the first victim of Doug, and the shares dive into the contract warning

shares Tone On Thursday, the Consulting Company began efforts to tighten federal spending on affecting its revenues.

The shares decreased by 7.3 % after the CEO of Accessore said in a profit call in the second quarter of finances that the company’s federal services had lost its contracts with the US government after the recent reviews.

“The federation represented nearly 8 % of our global revenues and 16 % of our revenues in the Americas in the fiscal year 2024. As you know, the new administration has a clear goal of the federal government management more efficiently. During this process, many new purchasing procedures have slowed down, which negatively affects our sales and revenues,” said CEO Julie Swallian Swint in Thursday’s calls for several calls Analysis on Wall Street.

ACCENture is among the first giants of American companies that have been subjected to the so -called government efficiency management in the Trump administration, an effort headed by billionaire Elon Musk Reducing the size of federal agencies And merge their office space.

Soweh said that the federal services for Accessure were also affected by the directives of the American Public Services Department for all federal agencies to review their contracts with the 10 best paid consulting companies contracting with the United States government, and then ending contracts that are not important important for relevant agencies.

“While we continue to believe our work for federal clients, the task is respectful, we expect constant uncertainty with the development of government priorities and these assessments are revealed,” said Sweet.

“We are witnessing a high level of what was already a state of great uncertainty in the global economic and geopolitical environment, which represents a shift from the profit report of the first quarter of 2025 in December,” Sweet added. “At the same time, we believe that the basics of our industry are still strong.”

Investors’ concerns about the risks associated with slow spending on the US government outperformed the results of the quarterly profits and revenues that were issued before the market on Thursday. The company has reported $ 2.82 per share profits for $ 16.66 billion, which is higher than $ 2.81 per share in revenues of 16.62 billion dollars, in reality.

Accenture shares decreased by 22.9 % during the past month, almost reduced the stock 14.5 % so far.

Consulting company shares Bose Allen Hamilton 8.1 % slipped on Thursday in sympathy.