(Reuters) – IT consulting firm Accenture forecast fourth-quarter revenue below Wall Street estimates on Thursday on worries that rising economic uncertainty will keep IT budgets tight and prevent businesses from signing fresh contracts.
Shares of the company were down 2% in trading before the bell.
Demand for IT services in the United States remains weak.
Cognizant Technology Solutions last month said it faced pressure in signing smaller contracts due to softer discretionary spending. India’s outsourcing giant Tata Consultancy Services said in April that U.S. recovery hadn’t materialized as expected and had, in fact, worsened.
Accenture forecast current-quarter revenue in the range of $15.75 billion to $16.35 billion. Analysts on average expect revenue of $16.35 billion, according to Refinitiv data.
Revenue for the quarter ended May 31 was $16.56 billion, in line with estimates.
(Reporting by Chavi Mehta in Bengaluru; Editing by Pooja Desai)
