Accenture narrows full-year growth guidance on uncertainty over Covid-19

Accenture has narrowed its full-year revenue growth expectations, as Covid-19 continues to impact its clients’ spending. Accenture has further slashed the higher end of the growth guidance. The company said its for fiscal 2020 full-year revenue growth is expected to be 3.5 to 4.5% in local currency, from the previously guided 3 to 6%.

For the third quarter that ended on May 31, 2020, the company reported revenues of $11 billion, a decrease of 1% in US dollar. The company expects revenues for the fourth quarter of fiscal 2020 to be in the range of $10.6 billion to $11.0 billion, or negative 3% to positive 1% growth in local currency. Accenture’s peers such as Cognizant, Tata Consultancy Services, Wipro, Infosys have cautioned about a slump in demand from their clients across markets as discretionary spending is being cut or reduced in the wake of the pandemic.

“In times of crisis, our laser focus on creating value for our clients, our ability to deliver mission-critical services for the world’s leading companies, and our unwavering commitment to our people and to living our core values inside and outside Accenture make a difference. I am proud of how we helped ensure the business continuity of our clients, while prioritizing the health and well-being of our people, and continued to deliver on our commitments to our shareholders,” said Julie Sweet, CEO, Accenture. The company said the Covid-19 impact reflects the revised growth guidance.

“Accenture’s fourth-quarter and full-year 2020 business outlook reflects its assumptions, as of today, regarding the continued effect of the coronavirus pandemic. The extent to which this continues to impact Accenture’s business, operations, and financial results, including the duration and magnitude of such impact, will depend on numerous evolving factors that are difficult to accurately predict,” said the company.

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