Global consulting giant Accenture suffered one of its worst trading sessions in years after issuing a weaker-than-expected revenue forecast and lowering its annual growth outlook.

Investors reacted sharply to the announcement, sending the company’s shares down by more than 15 percent during trading.

The decline reflected growing concerns about the consulting sector’s ability to maintain growth amid economic uncertainty and rapid advances in artificial intelligence.

Although Accenture reported earnings that largely met expectations, investors focused on management’s cautious outlook for the months ahead.

The company projected slower revenue growth and acknowledged that some clients remain hesitant about committing to large-scale technology projects.

Corporate spending has become increasingly selective as businesses seek to manage costs.

The company also announced several acquisitions, including cybersecurity firms Dragos, runZero and NetRise.

While management described the purchases as strategic investments designed to strengthen its AI and cybersecurity offerings, some analysts questioned whether the acquisitions would immediately contribute meaningful revenue growth.

Investors are increasingly debating whether artificial intelligence will create new opportunities for consulting firms or reduce demand for traditional advisory services.

Some fear that AI tools could automate functions that previously required large consulting teams, creating long-term challenges for the industry.

Despite the setback, Accenture remains one of the world’s largest consulting companies and continues to win major AI-related contracts.

Analysts say the company’s future performance will depend largely on its ability to convert AI investments into sustainable revenue growth.

Source: MarketWatch