Accenture becomes Elon Musk-led DOGE’s first corporate victim, sees decreasing shares after Donald Trump’s contract cut warning

Accenture, a leading consulting company, saw its shares plunged 7.3% on Thursday after US federal spending exceeded its revenue. Its Federal Services division missed many significant contracts after recent reviews by the government, revealed Chief Executive Julie Spellman Sweet. Her revelations came during the fiscal second-quarter earnings call. 

“Federal represented approximately 8% of our global revenue and 16% of our Americas revenue in FY 2024. The new administration is focused on running the government more efficiently, which has slowed many procurement actions, negatively impacting our sales and revenue,” Sweet stated.

Accenture loses contract over cutting down fears 

Accenture has been the first corporate entity to be the victim of the Trump administration’s Department of Government Efficiency (DOGE), who has been controversial since the start as it was started by billionaire Elon Musk for the purpose of cutting down federal agencies and office spaces. In the same context, the US General Services Administration (GSA) has ordered federal agencies to reanalyse their contracts with the highest-paid consulting companies and cancel non-essential agreements. “While we continue to believe our federal work is mission-critical, we anticipate ongoing uncertainty as government priorities evolve,” Sweet added. 

Accenture’s stock highlighted impressive earnings of $2.82 per share on $16.66 billion revenue, which was more than expected. However, its stock nevertheless fell startingly low amid increasing concerns by investors regarding low government spendings. 

Accenture’s stock has gone down 22.9% in the last one month, resulting in its year-to-date decline to 14.5%. The broader consulting sector also took a hit, with Booz Allen Hamilton shares slipping 8.1%.