Accenture reported stronger-than-expected fourth-quarter revenue on Thursday and announced a $865 million restructuring program to better align its workforce and operations with rising demand for digital and AI services.
The restructuring, set to run over six months, includes severance costs and selective divestitures, with savings to be reinvested into staff training and operational efficiency. The company recorded $615 million in charges in the fourth quarter and expects another $250 million in the November quarter.
Analysts said the plan underscores both the challenges and opportunities of the AI transition. “Accenture has a strong reskilling operation internally,” said CFRA analyst Brooks Idlet, noting the company’s focus on shifting resources toward higher-demand areas.
The Dublin-based consulting giant emphasized that it will continue hiring while phasing out roles tied to outdated skills. Its new talent strategy includes upskilling employees and using AI to improve productivity.
Accenture also faces challenges from U.S. policy shifts. President Donald Trump this month announced a $100,000 one-time fee for H-1B visas, a move that could increase labor costs for IT and consulting firms. Accenture had approvals for 1,568 H-1B beneficiaries in the first half of the year, placing it among the top 25 U.S. employers in the program. However, CEO Julie Sweet said the impact will be limited since only about 5% of its U.S. workforce is on such visas.
Other headwinds included delays and cancellations in U.S. federal contracts, which made up 8% of revenue in 2024 and trimmed growth this year by about 20 basis points.
Still, demand remains solid. Accenture booked $21.3 billion in new contracts in the quarter, a key indicator of future revenue. The company posted $17.6 billion in revenue, beating analyst estimates of $17.36 billion.
Looking ahead, Accenture forecasts full-year 2026 revenue growth of 2% to 5%, slightly below Wall Street’s expectation of 5.3%, according to LSEG data.