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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.
A strong dollar typically eats into profits of IT companies that
convert foreign currencies into dollars.
The company forecast current-quarter revenue between $15.20
billion and $15.75 billion, compared with analysts' average
estimate of $16.07 billion, according to data from Refinitiv.
The forecast reflects the assumption of about 8.5% negative
foreign-exchange impact, the company said.
Revenue for the quarter ended Aug.31 was $15.40 billion compared
with analysts' average estimate of $15.39 billion, according to
data from Refinitiv.
(Reporting by Chavi Mehta in Bengaluru;Editing by Vinay Dwivedi)
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