By Allison Pohle

Accenture, one of the world's largest professional-services firms, warned it could bring in less revenue in the current fiscal year than expected, dogged by upheaval to its business in the Middle East and investor worries about its AI future.

The firm's stock plunged 17% in morning trading -- to its lowest level in nearly a decade -- after the information-technology consulting firm lowered its revenue guidance for the fiscal year and said it had taken a $400 million hit to its Middle East sales.

CEO Julie Sweet told analysts the Iran conflict had interrupted business in the region and caused ripple effects beyond it, as the war prompted corporate clients to tighten discretionary spending.

Shares in professional services firms have taken a beating this year on market jitters that artificial intelligence tools will supplant some of what they do. Investors have also raised concerns that the companies that buy Accenture's services won't spend as much on IT as they expected in the coming months.

Accenture, which has nearly 800,000 employees worldwide, is one of the largest, and its stock has fallen 50% this year. Other companies that sell technological services have been affected, too, including IBM, which was down 6% Thursday and 15% year to date. Infosys, an Accenture rival, is down 40% for the year.

Accenture said some clients also shifted projects they expected to book revenues from this fiscal year to the next, which for Accenture begins September 1.

In a report earlier this week, Morgan Stanley downgraded its rating of the stock and lowered its price target, citing caution over the company's acquisition strategy. The report said investors are questioning the revenue potential of "product-focused" deals.

Just before the call, Accenture announced its plans to acquire a majority stake in Dragos and buy two other security firms outright.

Still, the Morgan Stanley report said the company is well-positioned for an eventual recovery, though the timing is uncertain.

Accenture said in the call Thursday that demand for large-scale projects is strong, with 104 quarterly client bookings of $100 million or more year-to-date, up 13%.

Write to Allison Pohle at allison.pohle@wsj.com

(END) Dow Jones Newswires

June 18, 2026 11:54 ET (15:54 GMT)

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