Accenture $ACN is one of the world’s largest IT services and consulting firms — but lately, it’s been left behind.
At a time when artificial intelligence is reshaping the enterprise landscape and fueling demand for digital transformation, most top-tier consultants are thriving.
But Accenture isn’t.
Despite having the scale, reputation, and resources to lead in this environment, the company is struggling to capitalize.
Revenue growth has stalled.
Bookings are uneven.
And operating leverage is under pressure.
This is especially concerning given the magnitude of the opportunity.
Businesses across every sector are racing to integrate AI into their workflows, and consultants are among the biggest beneficiaries of this gold rush.
Yet Accenture has been punished for 6 of its last 9 earnings reports, including 2 in a row.
That kind of consistent negative reaction sends a clear message: investor patience is wearing thin.
This isn’t about missed earnings. It’s about missed opportunity.
The market wants execution. And so far, Accenture hasn’t delivered.
The burden of proof is on the bulls now because mediocrity stands out more than ever in this environment.
So what else did we learn from Friday's earnings reactions? Let’s dive into the details.
Here are the latest earnings stats from the S&P 500 👇
*Click the image to enlarge it
Kroger $KR had the best reaction score after reporting mixed results.
The company reported revenues of $45.11B, versus the expected $45.16B, and earnings per share of $1.49, versus the expected $1.45.
Accenture $ACN had the worst reaction score after reporting a double beat.
The company reported revenues of $17.73B, versus the expected $17.32B, and earnings per share of $3.49, versus the expected $3.35.
Now let's dive into the data and talk about what happened with these reports 👇
KR has been rewarded for 6 of its last 7 earnings reports 🔥
Kroger rallied 9.8% after this earnings report, and here's why:
E-commerce sales grew 15% year-over-year, which management called the "best profit improvement yet on a quarter-over-quarter basis" for the segment.
The company is executing a $5B accelerated share repurchase program expected to be completed by Q3 2025, followed by an additional $2.5B in open market repurchases by year-end. This represents about 15% of the total market capitalization.
Management announced a comprehensive store optimization strategy. Over the next 18 months, they plan to close approximately 60 underperforming stores while accelerating new openings beyond the 30 planned for 2025.
This company is crushing it, and because of it, the stock is on the cusp of new all-time highs.
The price reclaimed the VWAP anchored to the all-time high last, proving the bulls are in complete control of the short-term trend.
We want to see more upside follow-through this week.
If KR is above 69, the path of least resistance is higher for the foreseeable future.
Our line in the sand is the VWAP anchored to the all-time high.
ACN had its 2nd consecutive negative earnings reaction 🩸
Accenture fell 6.9% after this earnings report, and here's why:
Gross margin contracted to 32.9% from 33.4% in the prior year quarter, primarily due to higher labor costs.
The new Washington D.C. administration's cost-cutting initiatives have created significant challenges for the company's U.S. Federal Contracting segment.
To make the bad quarter worse, management disclosed an ongoing U.S. Department of Justice civil and criminal investigation concerning Accenture Federal Services. This could result in civil and criminal penalties, termination of contracts, forfeiture of profits, etc.
This is one of the largest consulting companies in the world, but it's facing significant headwinds right now.
These struggles are happening in a time when business should be booming. Companies need help implementing AI.
Instead, they've been punished for 6 of their last 9 earnings reports... and every quarter of 2025.
The chart looks like one of the biggest messes in the S&P 500, completely trendless for the last few years.
We like defining our risk and reward using the Fibonacci retracement levels from the 2020 to 2022 bull market.
If ACN is below 310, the path of least resistance is lower for the foreseeable future.
Thank you for reading.
- The Beat Report Team
P.S.: Sean McLaughlin doesn’t care if the market’s up, down, or sideways — he’s got a strategy for it.
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