Accenture sees Q1 revenue below estimates on IT spending cut, higher USD

IT services firm Accenture Plc forecast first-quarter revenue below expectations on Thursday, weighed down by IT spending cuts amid high inflation and impact from a stronger dollar.

Foreign exchange headwinds have intensified since Accenture’s third-quarter results, with the U.S. dollar at a two-decade high against a basket of currencies and up about 16% so far this year amid sharp Fed rate hikes and rising geopolitical tensions.

This has impacted companies with significant overseas operations including Microsoft, Salesforce and IBM.

Analysts worry a protracted economic slowdown could dent robust IT spending with the cracks already showing after Salesforce cut its annual revenue and profit forecast noting “measured” spending from clients.