Accenture's (ACN) fiscal Q3 results were impacted by a challenging macro environment, but the company should recover in fiscal 2027, RBC Capital Markets said in a Thursday note.
The company's bookings for the quarter were down 3% year over year, negatively impacted by roughly $100 million due to the Middle East conflict, the note said. However, Accenture pointed to solid underlying demand fundamentals, with 30 clients having quarterly booking of over $100 million.
Accenture was also affected by extended sales cycles, with customers in EMEA having prolonged decision-making timelines and several large opportunities delayed into fiscal 2027 due to company-specific reasons, according to the note.
The company expects Consulting bookings to remain strong for AI transformation and digital modernization, though revenue is projected to maintain low-single-digit growth in the near term due to backlog timing, the report said. The firm expects mid-single digits growth for Managed Services bookings.
RBC cut its price target to $175 from $253 while keeping its outperform rating.
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