Last Thursday evening my mate Felix called, absolutely raging about his portfolio. “Have you seen what’s going on with Accenture?” he asked. “Ye gods, the share price has dropped again!”
I hadn’t looked at the markets that day, but Felix’s freak-out made me wonder. Took a look at the charts and saw what he was saying. Accenture, as of Sept. 5th, 2025, was trading at $254.95, well below the peak earlier this year.
The Numbers Don’t Lie
This is what caught my eye right off the bat at first glance. Shares of Accenture reached an all-time high of $394.31 on Feb 5th, 2025. That is, we’re looking at a 35% drop from the high. Ouch.
But before you start panicking like Felix did, let’s put this in perspective. The Accenture share price has long been something of a roller coaster. I have been following ACN for approximately three years, so this is not the first time that it has taken a nosedive.
What’s Behind the Drop?
It has been a rough stretch for the tech consulting industry. Businesses are cutting back on costly consulting projects. That one kicks a firm like Accenture in the pocketbook.
Based on their guidance for Q1 fiscal 2025, they are anticipating GAAP diluted EPS of $12.43 to $12.79. Those are not terrible numbers, but they are not exactly setting the world alight either.
The AI question is really what’s made investors jittery. Everyone is talking about artificial intelligence, but it is difficult for anyone to predict how it will impact consulting firms in the long run. Will AI replace some of the work that Accenture does? Or will it lead to new opportunities? The jury’s still out.
My Personal Experience with ACN
I first invested in Accenture in 2022. It sounded like a good bet: having large corporate clients, stable revenue, and a healthy dividend. The stock was around $280 then, and I felt pretty clever when it climbed towards $350.
I wish I had sold some when it reached that February high, but hindsight’s 20/20, isn’t it? The classic example of being greedy when you should be cautious.
The Analysts’ View
Analysts sound more bullish than the current share price indicates. They have a consensus “Buy” rating and a $353.85 average target. That would be a pretty big step increase from where we are today.
There is a wide spread on the predictions, though. The lowest is $240, and the highest is $420. A range like that tells you that no one really knows what’s going to happen next.
What I Reckon Is Going On
Have been thinking about this a fair amount since Felix phoned. The Accenture share price drop feels like a classic case of the market overreacting to uncertainty.
And yes, the consulting business is a cyclical one. Yes, A.I. might well turn the tables. But Accenture is not some pint-sized start-up trying to figure out its business model. They have big contracts with Fortune 500 companies, a worldwide footprint, and extensive experience in digital transformation.
The Dividend Angle
What keeps me interested, one thing, anyway, is the dividend. Accenture has a respectable record of paying dividends. Even if the share price stays flat for a while, you’re still getting something back.
Keep in mind, dividend yields only matter if the business doesn’t go down the toilet. But I don’t see ACN doing that any time soon.
Looking at the Competition
Accenture is not in a terrible position compared with other consulting firms. IBM is in worse shape, McKinsey is not publicly traded, and the smaller players don’t enjoy the same scale advantage.
The AI threat could actually work in their favour if they play their cards right. Big companies will need help implementing AI solutions, and that’s exactly what Accenture does.
My Strategy Going Forward
I’m not selling my position yet. This feels like one of those times when the market’s being overly pessimistic. The fundamentals haven’t changed dramatically; it’s mostly sentiment driving things down.
That said, I’m not loading up the truck either. Too much uncertainty for that. If the share price drops below $240, I might add a bit more. Above $300, I’d probably trim some.
The Risk Factors
Let’s be honest about what could go wrong. A proper recession would hammer consulting spending. Major client losses could hurt revenue badly. And if AI really does replace a chunk of what they do, that’s a serious long-term threat.
Currency movements are another headache. Accenture gets revenue from all over the world, so a strong dollar can make its numbers look worse even if the underlying business is fine.
What Felix Should Do
Told Felix to stop checking his portfolio every five minutes. The bloke’s driving himself mental watching daily price movements.
If he needs the money in the next year or two, maybe selling makes sense. But if this is long-term investment money, riding out the volatility probably makes more sense than panic selling at the bottom.
Final Thoughts
The Accenture share price has taken a proper beating this year, no question about it. But I reckon the company’s stronger than the current valuation suggests.
Markets hate uncertainty, and there’s plenty of that right now. But Accenture’s been through tough periods before and has come out the other side. My money’s on them doing it again.
Just don’t expect it to happen overnight. These things take time to sort themselves out.
