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Accenture Tops Revenue Estimates, Launches $865 Million Restructuring Amid AI Push

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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The Dublin-based consulting giant emphasized that it will continue hiring while phasing out roles tied to outdated skills.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.

Accenture plans new Andhra Pradesh campus, aims to add 12,000 jobs in India

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Accenture has proposed building a new campus in Visakhapatnam, in the southern Indian state of Andhra Pradesh, with plans to eventually create 12,000 jobs, sources told Reuters. The move would significantly expand its presence in India, which is already Accenture’s largest global hub with over 300,000 employees out of 790,000 worldwide.

The proposal seeks around 10 acres of land under a new Andhra Pradesh policy offering large firms leased land at a token rate of 0.99 rupees ($0.0112) per acre in exchange for job creation. The request is currently under government review but is expected to be approved, according to officials familiar with the matter.

The state recently approved similar projects by Tata Consultancy Services (TCS) and Cognizant, which together plan to generate about 20,000 jobs in Visakhapatnam. Cognizant has pledged $183 million, while TCS has earmarked about $154 million for its facility.

Accenture has not disclosed its planned investment, but if approved, the Visakhapatnam campus would mark another step in the tech sector’s push into Tier-2 Indian cities. Companies are expanding beyond major hubs like Bengaluru and Hyderabad to tap lower land, wage, and rental costs, while benefiting from easier local hiring.

The expansion also comes as the Indian IT sector faces global headwinds:

  • U.S. President Donald Trump’s new $100,000 H-1B visa fee could hurt Indian firms, which are the largest users of the program.

  • A proposed 25% U.S. outsourcing tax could lead clients to delay or renegotiate contracts, adding further uncertainty.

Despite these challenges, India remains a cornerstone of global IT operations, and Andhra Pradesh is positioning itself as a rising destination for major technology investments.

MAGA Figures Accuse Elon Musk of Retaliation Over H-1B Visa Dispute

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A rift between MAGA supporters and Elon Musk has escalated into accusations that the tech billionaire is using his platform, X (formerly Twitter), to silence dissent over his pro-H-1B visa stance. Musk’s advocacy for the program, which allows highly skilled foreign workers to enter the U.S., has sparked criticism from prominent Trump allies, including Laura Loomer, Ann Coulter, and former Congressman Matt Gaetz.

Musk, the CEO of Tesla and SpaceX and President-elect Donald Trump’s pick to lead the newly created Department of Government Efficiency, has defended the H-1B visa program, emphasizing its importance for maintaining U.S. competitiveness in technology and innovation. “If you want your TEAM to win the championship, you need to recruit top talent wherever they may be,” Musk posted on X, adding that “bringing in via legal immigration the top ~0.1% of engineering talent” is “essential for America to keep winning.”

The defense of the visa program has drawn backlash from Trump loyalists. Laura Loomer, a far-right activist and outspoken Trump supporter, claimed that Musk retaliated by removing her verification badge on X and blocking her ability to earn revenue from paid subscriptions on the platform. Loomer, who has over 1.4 million followers, called Musk “a free speech fraud” and accused him of silencing her for opposing the H-1B program.

Conservative PAC, led by chairman Preston Parra, also reported that 53 accounts linked to the organization lost their verification badges. Parra expressed outrage, stating, “If anyone thinks the REAL backbone of the right wing and MAGA is gonna stand idly by while these big tech gillionaire Silicon Valley dweebs… steal our country, they’re mistaken.”

Musk has not publicly addressed the removal of badges but dismissed Loomer’s claims, posting that “Loomer is trolling for attention.” CNN has reached out to X and Loomer for comment, but no responses have been received.

The controversy highlights a growing tension within the MAGA movement over immigration policies, particularly as Musk’s pro-immigration stance contrasts with Trump’s critical position on the H-1B program. It also underscores the broader debate about free speech and platform governance, with Musk’s actions drawing scrutiny amid his claims of promoting open dialogue on X.