Episode summary
Accenture Forecast Sends Stock Tumbling a Record 20% | Bloomberg Intelligence
Bloomberg Intelligence
· · 26 min · Hosts: Paul Sweeney, Scarlet Fu · Guests: Anurag Rana, Wayne Sanders, Ira Jersey, Ann Miletti
Summary
Accenture’s guidance was the clearest warning sign in the discussion: the company said revenue growth will be weaker than expected, bookings fell 2% for the quarter ended May 31, and the stock’s 20% plunge became its worst one-day drop on record. The analysts argued that the selloff fits a broader market rotation in which AI spending is crowding out software and consulting budgets, with capital instead flowing toward semis, servers and other hardware-linked names.
That same AI pressure was used to explain why software names more broadly are getting punished, even as larger platforms such as ServiceNow, Workday and SAP were described as more insulated than smaller, debt-funded firms. The conversation also touched on Intel after reports of a possible Apple chip arrangement, but the view was that manufacturing capacity and advanced nodes still matter more than headlines.
The second half shifted to geopolitics and policy. A defense analyst said the interim US-Iran deal could reopen the Strait of Hormuz, but the next 60 days remain delicate because of disputes over uranium enrichment and sanctions. On rates, the new Fed chair was described as hawkish, with markets now pricing in hikes and a flatter path than cuts, while equity investors said they are sticking with fundamentals, industrials, midcaps and selective emerging markets.
Key takeaways
- Accenture’s weaker guide and 2% booking decline were read as evidence that AI spending is being funded out of consulting budgets.
- The analyst said the market’s near-term trade is simple: go long semis and avoid software and services.
- Large software leaders like ServiceNow, Workday and SAP were viewed as better insulated than smaller private software firms with heavy debt loads.
- The defense analyst said the Iran agreement could help reopen the Strait of Hormuz, but the 60-day nuclear talks are likely to be rough.
- The new Fed chair was described as hawkish, and the market is now pricing for hikes rather than the easy policy path many expected.
- Allspring’s equity chief said industrials and selective midcap and emerging-market names look attractive as AI spend broadens beyond the biggest US stocks.
Notable quotes
“maybe 150 basis points less growth for them. I mean, this is this is really shocking because they talked about Iran”
“if an enterprise or if a corporation is going to spend money on AI, where is that money going to come from”
“the market is, uh, is now priced for a couple of interest rate hikes, but then an interest rate cut, which something is wrong”
“we came into 2026 believing there was a lot more room to run in EM”
How the episode opens
Bloomberg Audio Studios podcasts radio news. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m. Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts or watch us live on YouTube. I'm going to say a year maybe two years ago some tech analyst came in here and said you know all these companies across industries are spending a lot on AI
It's got to come from someplace that money and he highlighted one area that it's going to be hitting us which is some of these consultants out there let's pull back on some of the money we're spending on consulting because we have to invest in AI
So it's not so much that they don't need their services it's that we're investing in AI so we can hold off on paying these guys — Absolutely and I think and that analyst was Anna Ragana a senior tech analyst for Bloomberg intelligence honor. We saw Accenture today give some guidance that really disappointed the street. The stock is down 15% year-to- date. It's down 550% on a year-to- date basis. Down 15% today. What did you hear from Accenture?
I mean to be honest, look at the carnage and what they said was, you know, maybe 150 basis points less growth for them. I mean, this is this is really shocking because they talked about Iran. They talked about projects being pushed out into next year and so forth.
And this goes into the, you know, thesis that you just repeated because at the end of the day, if you're going to spend money, if an enterprise or if a corporation is going to spend money on AI, where is that money going to come from?
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- accenture earnings outlook
- ai impact on consulting
- fomc and fed policy
- us-iran negotiations
- ai capex and diversification
Companies and tickers mentioned
- ACN
- Accenture Plc
- Allspring Global Investments
Watch the episode
Watch “Accenture Forecast Sends Stock Tumbling a Record 20% | Bloomberg Intelligence” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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