Accenture's core work of installing software for enterprises is exactly what agentic AI does first and cheapest: the coding, testing and documentation that fill billable hours. For ten years it compounded as the firm, with 786,000 people and $70B in revenue, that taught the Fortune 500 to use its tools. Now those tools may not need a teacher. The stock is down 58% in a year and breaking down both fundamentally and technically. x.com 

Accenture's rising acquisition spending raises concern about shareholder value as its return on invested capital falls. ROIC dropped from about 113% to 25% while debt tripled in two years to $13.4 billion, exceeding cash for the first time. Revenue grew 6% and operating margin held near 15-16%; 25% is still a very good return and net debt is close to zero. AI's potential to reshape consulting remains a worry. x.com 

Accenture and Wolters Kluwer benefit massively from cheaper AI tokens and margin gains as they deploy AI. Their knowledge costs rank among the highest relative to COGS, but regulatory capture, reputation and sticky customers keep revenue broadly intact. Neither shows clear signs of slowing growth; Accenture guided to high-single-digit revenue growth from 2029. Despite enormous terminal-value compression, an unwinding AI-infrastructure trade could bring a sizeable rerating if fundamentals hold. … Show more

Accenture's surge on claims that AI is helping the business overlooks how hard it was straining for revenue. Just a few months ago it effectively asked employees to defer vacation so they could bill more hours in Q4 and pull revenue forward. x.com 

Microsoft's AI ROI is massive because it expects to sustain its current 18% year-over-year growth with 27% fewer employees. It is cutting its workforce by 27%, undercutting claims that AI has no ROI. x.com 

Accenture looks undervalued because the market seems to have decided AI kills consulting, while it could be the big winner as companies need AI implemented at scale. Q2 bookings hit a record $22.1B, AI bookings nearly doubled to $2.2B and FCF guidance rose to $10.8-11.5B. It has 85,000 dedicated AI staff, and unlike McKinsey it builds, runs and maintains AI, yet trades at 14x earnings, cheaper than Coca-Cola. This could be very wrong, but it looks interesting at these levels. x.com  x.com  x.com 

IT services firms and government contractors such as Accenture, Booz Allen Hamilton and Cognizant face a double hit from government downsizing and AI disruption. The slide began in January 2025 as DOGE and the incoming Trump administration promised to shrink the federal workforce, and every government employee laid off affects about three contractors and many programs. AI is the frosting on the cake, with @mukund saying AI has begun eating IT services and consulting. x.com 

Microsoft faces AI disruption that could erode its software moat and compress its high multiple. Chris Hohn, the best stock picker ever and not one to move lightly, cut Microsoft from 10% to 1% of his portfolio, about $8 billion, citing AI disruption. The question that matters is whether a business can be disrupted: when code becomes a commodity the moat erodes, and multiple compression from a high base does severe damage. x.com 

Accenture looks overdone after its post-earnings plunge, with a dividend yield above 5% and a forward P/E in the low 10s, near March 2020 pandemic-low prices. It booked 104 deals of $100 million-plus this year, up 13%, raised its dividend 10% and is buying Dragos, runZero and NetRise to expand in cybersecurity. Yet this is not a growth stock: revenue missed, bookings fell 2%, guidance was cut, the Middle East cost $400 million, and agentic AI threatens consulting. It could fall further. x.com 

HubSpot shows that disruptors get disrupted, as AI forces CRM vendors toward outcome-based pricing that bills for results rather than users. KCR made that call in December 2025, and it materialized on May 7, 2026, when HubSpot moved its AI agents to outcome-based pricing and cut prices; the stock fell about 19% the next day. x.com