Accenture shares fell nearly 14% in premarket trading Thursday after the consulting giant unveiled a $4.18 billion cybersecurity acquisition and issued a weaker revenue outlook than market expectations.
The company lowered its full-year revenue growth guidance to 3%-4% from its previous forecast of 3%-5%. Accenture expects fourth-quarter revenue to be between US$17.75 billion and US$18.4 billion, below analysts’ consensus forecast of US$18.47 billion, according to Reuters citing data from the London Stock Exchange Group. The weak forecast weighed on investor sentiment, sending shares lower.
Accenture is acquiring three cybersecurity companies
Accenture announced three cybersecurity deals with a total value of $4.18 billion. The company will take a majority stake in industrial cybersecurity company Dragos. It will also fully acquire asset intelligence company runZero. Accenture Also acquired NetRise, a company focused on device security.
The acquisitions are expected to expand Accenture’s cybersecurity business, which currently has annual revenue of approximately $10 billion, according to an official Accenture press release. The three companies are expected to add a combined annual recurring revenue of about $208 million, Reuters reported. The transactions are expected to close in August or September 2026, pending regulatory approvals.
Why Accenture cares about cybersecurity
As internet connectivity continues to evolve and usage increases, companies are spending more on cybersecurity AI New security risks are being created. According to Reuters, factories, power grids, water systems, data centers and other critical infrastructure are becoming increasingly vulnerable to cyberattacks. Even as demand slows in some of its other consulting businesses, Accenture still sees cybersecurity as a key growth area.
Demand for IT and consulting projects has weakened due to economic and geopolitical uncertainty. Investors are also concerned that advanced artificial intelligence tools could reduce demand for some traditional software and consulting services. These concerns are weighing on valuations across the consulting industry.
Accenture latest quarterly results
Accenture reported $19.3 billion in new bookings in the third quarter. New bookings were down approximately 2% from the same period last year. Third-quarter revenue rose 6% to $18.72 billion. However, revenue was slightly below analysts’ expectations of $18.75 billion.
Accenture Chairman and CEO Julie Sweet said in a company statement that the company’s cybersecurity business continues to expand at a double-digit rate. She noted that the increasing sophistication of AI-driven cyberattacks, coupled with rising geopolitical uncertainty, is driving stronger demand for AI. network security Serve. Sweet also highlighted Accenture’s long-term strategy of using acquisitions to strengthen its capabilities and support future growth.
Accenture highlights long-term growth in cybersecurity
Accenture said its cybersecurity revenue has grown from $700 million in 2016 to $10 billion in fiscal 2025. That represents a compound annual growth rate of 35%, about four times Accenture’s overall growth rate, the company said. Accenture already has a strong position in the operational technology (OT) cybersecurity services market, which is estimated to be worth approximately $7 billion.
These acquisitions will help it expand into the broader OT cybersecurity software market. Accenture estimates that the market could reach $27 billion by 2026, growing to nearly $59 billion by 2031. The company expects the market to grow at about 16% annually.
Expected financial impact of acquisition
Dragos, runZero and NetRise are expected to generate approximately $208 million in annual recurring revenue by June 2026. According to Accenture, this represents a year-over-year increase of 53%. The company said the acquisitions will reduce earnings slightly initially but will improve earnings per share and free cash flow over time. Accenture believes these transactions will support long-term growth and returns for shareholders.
