Accenture Shares Tumble 7.2% As Musk’s DOGE Bites Into Federal Contracts
Even beating Wall Street’s expectations can’t shield you from Elon Musk’s budget guillotine. Accenture posted better-than-expected earnings and raised its revenue forecast, yet shares plunged 7.2% yesterday after revealing that new federal contracts have “slowed sharply” amid DOGE’s cost-cutting crusade — another casualty of the consulting crackdown.
- Federal contracts, representing 8% of Accenture’s $16.7B quarterly revenue, are under fire — as ten contracts, including one worth $5M, have already been terminated for “convenience.”
- “Only services with a demonstrable [taxpayer ROI] … will remain,” said a White House official — already canceling 30+ contracts from Deloitte, IBM, Booz Allen Hamilton, and seven others, the former of which received a $1.9B termination for its IRS IT services.
Consulting pivot underway: Despite the consulting sector’s index plunging by 16.8% since February’s peak, Accenture’s CEO sees “major opportunities … to drive a whole new level of efficiency.” Similarly, Booz Allen’s CEO believes Trump’s smaller-government vision creates demand for their tech solutions and AI expertise. Perhaps these consulting giants can strategize their way out of DOGE’s doghouse — after all, problem-solving is what they bill taxpayers for.
