Accenture Bets Big on Buybacks and Cybersecurity as Revenue Growth Slows to 3%

Accenture unveils $2B buyback expansion and $4.18B Dragos acquisition to counter 46% stock rout; consulting revenue slowdown persists with full-year growth cut to 3-4%.

Accenture is mounting a two-front assault to arrest a near-50% stock rout, unveiling a $2 billion expansion of its buyback programme alongside a $4.18 billion acquisition of cybersecurity specialist Dragos. The moves sent shares up 3% to €118.80 on Thursday, but the broader picture remains clouded by a sharp slowdown in consulting revenue and geopolitical headwinds.

The buyback boost brings the total authorisation to roughly $7.5 billion, while the Dragos deal – supplemented by the integrations of runZero and NetRise – marks a strategic pivot toward protecting critical infrastructure against AI-driven cyber threats. Industry watchers expect the market for such security solutions to expand significantly by 2031, creating a new growth runway for the consultancy. Meanwhile, Accenture continues to pay a quarterly dividend of $1.63, offering a yield of nearly 5% at current levels, with the ex-dividend date set for July 2026 and payment in August.

The aggressive capital return comes as the company’s core consulting business faces headwinds. In its fiscal third quarter, Accenture posted revenue of $18.7 billion, up 6% but just shy of analyst expectations. Earnings per share of $3.80 beat the $3.70 estimate, and free cash flow rose to $3.6 billion. Yet management now expects full-year revenue growth of just 3% to 4%, down from a previous top end of 5%. Chief Executive Julie Sweet blamed geopolitical tensions in the Middle East, which cost roughly $100 million in revenue last quarter and are expected to weigh on fourth-quarter bookings by about $400 million.

The stock’s year-to-date decline stands at approximately 46%, a staggering drop that has left it trading with a relative strength index of around 36 – near oversold territory. The selloff reflects broader IT sector caution, as American and European clients tighten spending amid high logistics costs and economic uncertainty. Institutional investors have taken opposing positions: Pzena Investment Management added over 1 million shares in the first quarter, while other funds nearly halved their holdings over the same period.

Analysts remain cautiously optimistic. Of the 25 covering the stock, 12 rate it a buy, and the average price target sits at $179 – implying significant upside from current levels. But that recovery hinges on the company’s ability to quickly offset consulting revenue losses with growth in its cybersecurity and AI integration services. Gartner warns that autonomous AI systems threaten traditional software licensing, but also create opportunities for consultancies like Accenture in complex client implementations. For now, the dual strategy of returning cash to shareholders and spending heavily on transformative acquisitions suggests management is betting on a long-term rebound, with the next few quarters set to test whether the security pivot can fill the gap left by a cooling consulting market.