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Accenture Stock Faces 40% Drop, Presents Investment Opportunities Amid Workforce Cuts and AI Growth

Accenture plc's stock has experienced a significant 40% decline, trading at just 14 times free cash flow, which many analysts see as a rare investment opportunity. Despite modest revenue growth and margin pressures, the company's long-term prospects remain strong due to steady acquisitions, margin improvements, share buybacks, and a strategic focus on AI-driven growth. Accenture's recent results show a 7.3% revenue increase to $17.6 billion in Q4 2025, with notable growth in financial services (up 15%) and products (up 9%). The company has tripled its generative AI revenue to $2.7 billion in fiscal year 2025, backed by a $3 billion multi-year investment, positioning it to capitalize on the expanding global IT consulting market projected to grow by 7% in 2025 to $5.61 trillion. Meanwhile, FNZ plans to cut 5% of its global workforce, indicating ongoing operational restructuring. Analysts suggest that Accenture's valuation and resilient fundamentals make it a compelling long-term investment, though it may not be a 'generational' buy. The stock's current low valuation, combined with its strategic focus on AI and digital transformation, supports its potential as a value stock, despite inherent market risks and volatility.

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