11:46 AM EDT, 06/12/2025 (MT Newswires) -- Accenture ( ACN ) may raise the lower end of its full-year 2025 growth guidance by 100 basis points, driven by its ability to convert longer-duration managed services contracts, Morgan Stanley said Thursday in an earnings preview.

The firm expects Accenture ( ACN ) to lift the bottom end of its fiscal 2025 constant-currency growth guidance to 6%-7%, up from the previous 5%-7% range. These longer-term deals are expected to help cushion ongoing macroeconomic headwinds.

Accenture ( ACN ) is scheduled to report fiscal Q3 earnings on June 20.

Morgan Stanley said the top end of the guidance is likely to remain unchanged given a stable but lackluster bookings environment. It also highlighted investor caution around fiscal 2026, with many viewing the firm's 5.5% growth estimate as too optimistic.

The bank flagged persistent funding pressure at Accenture Federal Services, where the Department of Government Efficiency, or DOGE, cost-cutting remains a key overhang.

Morgan Stanley maintained an equal-weight rating on Accenture ( ACN ) and cut its price target to $340 from $372.

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