Accenture shares dropped nearly 14% in premarket trading on Thursday after the consulting giant unveiled cybersecurity acquisitions worth $4.18 billion and issued a softer revenue outlook that fell short of market expectations.
The company trimmed its full-year revenue growth guidance to 3%–4%, down from the previously projected 3%–5% range. For the fourth quarter, Accenture expects revenue of between $17.75 billion and $18.4 billion, below analysts’ consensus estimate of $18.47 billion, according to LSEG data cited by Reuters. The subdued forecast weighed on investor sentiment and sent the stock lower.
Accenture is buying three cybersecurity companies
Accenture announced three cybersecurity deals worth a combined $4.18 billion. The company will take a majority stake in Dragos, an industrial cybersecurity company. It will also fully acquire runZero, an asset intelligence company. Accenture is also buying NetRise, a company that focuses on device security.
The acquisitions are expected to expand Accenture’s cybersecurity business, which now generates about $10 billion in annual revenue, as per the official press release by Accenture. The three companies together are expected to add about $208 million in annual recurring revenue, as per Reuters report. The deals are expected to close in August or September 2026, subject to regulatory approval.
Why Accenture is focusing on cybersecurity
Companies are spending more on cybersecurity because growing internet connectivity and increased use of AI are creating new security risks. Factories, power grids, water systems, data centers and other critical infrastructure are becoming more vulnerable to cyberattacks, as noted by Reuters. Accenture sees cybersecurity as a major growth area despite slower demand in some other consulting businesses.
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Demand for IT and consulting projects has weakened because of economic and geopolitical uncertainty. Investors are also concerned that advanced AI tools could reduce the need for some traditional software and consulting services. These concerns have put pressure on valuations across the consulting industry.
Accenture’s latest quarterly results
Accenture reported $19.3 billion in new bookings during the third quarter. New bookings were down about 2% from the same quarter last year. Third-quarter revenue increased 6% to $18.72 billion. However, revenue slightly missed analysts’ expectations of $18.75 billion.
In a company statement, Accenture Chair and Chief Executive Officer Julie Sweet said the firm’s cybersecurity business continues to expand at a double-digit pace. She noted that the growing sophistication of AI-driven cyberattacks, along with rising geopolitical uncertainty, is driving stronger demand for cybersecurity services. Sweet also highlighted Accenture’s long-standing strategy of using acquisitions to strengthen its capabilities and support future growth.
Accenture highlights long-term cybersecurity growth
Accenture said its cybersecurity revenue has grown from $700 million in 2016 to $10 billion in fiscal 2025. The company said this represents a 35% compound annual growth rate, about four times faster than Accenture’s overall growth rate. Accenture already has a strong position in the operational technology (OT) cybersecurity services market, which it estimates is worth about $7 billion.
The acquisitions will help it expand into the broader OT cybersecurity software market. Accenture estimates that market could be worth $27 billion in 2026 and grow to nearly $59 billion by 2031, as per Accenture. The company expects the market to grow at roughly 16% annually.
Expected financial impact of the acquisitions
Dragos, runZero and NetRise are expected to generate about $208 million in annual recurring revenue as of June 2026. That would represent 53% year-over-year growth, according to Accenture. The company said the acquisitions will initially reduce earnings slightly, but should improve earnings per share and free cash flow over time. Accenture believes the deals will support long-term growth and returns for shareholders.
