Morgan Stanley’s James Faucette expects the company to raise the bottom end of its 2025 revenue guidance by 100 basis points, layering in longer-duration managed services contracts.
Shares of technology services company Accenture plc (ACN) have underperformed the broader market this year amid worries over macroeconomic conditions and the potential loss of federal contracts.
Accenture investors will be keen to get an insight into how the New York-based company’s businesses have fared as the uncertainties continue.
The company is scheduled to report its results for the third quarter of the fiscal year 2025 before the market opens on Friday.
The Finchat-compiled consensus calls for adjusted earnings per share (EPS) of $3.31, up from $3.13 a year ago. Revenue is estimated at $17.27 billion versus the $16.47 billion reported a year ago, marking a 5% year-over-year (YoY) increase.
Accenture’s guidance issued in late March models revenue of $16.9 billion to $17.5 billion.
Morgan Stanley’s James Faucette expects the company to raise the bottom end of its 2025 revenue guidance by 100 basis points, layering in longer-duration managed services contracts.
With bookings remaining stable, the upper end will likely be maintained unchanged, he said.
In March, the company guided to adjusted EPS and revenue growth of $12.55-$12.79 and 5%-7%, respectively. Analysts, on average, estimate $12.75 in EPS and nearly 6% revenue growth.
Faucette said investor sentiment toward Accenture stock leaned toward negative, with the 30-day change in short interest rising by 20 basis points to 1.1% of the free float.
Morgan Stanley raised its 2025 estimates for the company due to positive forex impact but reduced estimates for the next fiscal year, citing muted overall confidence in the business trajectory. The firm expects this to continue to pressure the multiple.
As such, Faucette reduced the price target for Accenture stock to $340 from $372 and maintained an ‘Equal-weight’ rating.
The analyst said federal spending data showed that the pace and size of new Accenture Federal Services (AFS) contracts continue to trend downward as Department of Government Efficiency (DOGE) cost-cutting efforts remain active.
On the other hand, Fly reported that JPMorgan analysts on Monday upped the price target to $353 from $349 and maintained an ‘Overweight’ rating. The analysts braced for in-line third-quarter revenue and modest revenue upside due to currency swings, but expect the full-year outlook to be left unchanged.
Retail sentiment toward Accenture stock was ‘neutral’ (50/100) by late Monday, and the message volume was high.’

A watcher remained optimistic, citing growing demand for consultancy services.
Accenture stock ended Monday’s session up 0.84% at $314.33, although it is down 10% year-to-date.
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