Accenture CEO Julie Sweet says AI transformation will 'take some time' as stock price takes another hit

Accenture's CEO, Julie Sweet, is calling for patience from investors as the company's stock continues to struggle. Shares of the global professional services firm plummeted nearly 20% on Thursday, marking a staggering 50% decrease over the past year. In the latest earnings report for the fiscal third quarter ending May 31, Accenture revealed a 2% decline in new bookings compared to the same period in 2026. Despite reporting revenues of $18.7 billion, which is an increase of $1 billion from the previous year, the figures fell short of analysts' expectations. During the earnings call, Sweet attributed part of the downturn to the ongoing geopolitical tensions in the Middle East. However, she emphasized a positive long-term outlook, particularly as companies increasingly seek Accenture's expertise in artificial intelligence. "I believe investors are overlooking the potential of AI and how we are strategically positioning ourselves for future growth," Sweet stated in an interview with CNBC following the earnings release. She mentioned a rise in consulting sales and highlighted that the firm generated $9 billion in managed services. "The scaling of AI will require time, but the demand for large-scale AI transformations is evident," she added. Sweet pointed out that many clients are moving beyond pilot programs and into full-scale production, indicating a shift in the market as the need for comprehensive AI integration grows. "We're currently engaged in more consulting as clients focus on reinventing their operations," she explained, referring to the company's in-house term for AI transformation. She expressed optimism about the future, noting that the pace of AI scaling will depend on how quickly enterprises are ready to adapt. Last year, Accenture made a significant shift in its approach to AI, merging its strategy, consulting, technology, and operations services into a unified unit called 'reinvention services.' Sweet also highlighted plans to simplify the integration of data and AI across their client base and into new markets. However, with the current stock performance, it seems that investors are beginning to lose their patience as they await tangible results.