New Delhi, March 19 -- Accenture forecast quarterly revenue below estimates on Thursday, as clients remain cautious on spending on large IT transformation projects amid an uncertain economic environment.

Shares of the Dublin, Ireland-based company were down more than 3% in premarket trading.

The company has been navigating a challenging economic environment, as clients delay large digital transformation projects and prioritize cost control and short-term initiatives.

Accenture expects a 1% revenue hit for fiscal 2026 from a slowdown in its federal business as agencies are reining in spending and redirecting budgets.

Analysts have said AI should support growth over the long term, but weak demand due to cautious client spending is unlik...