Accenture agrees to $25 million DOJ settlement over hiring practices

Accenture Song's Melissa Fein, who grew its Asia Pacific media operations, will lead its U.S. media business starting October 1. Madison And Wall notes this reflects Accenture's ambitions to expand in U.S. media, potentially through acquisitions. Fein previously secured key clients like Optus, Airwallex, and Australia Post.

Deutsche Bank raised its price target for Accenture (ACN) to $175 from $136, maintaining a Hold rating. The firm cited higher peer valuations for the increase but noted soft demand trends and limited AI-related budget uplifts. The update comes ahead of Accenture's fiscal Q4 earnings report.

Accenture agreed to pay $25M to settle a DOJ case alleging its federal contractor subsidiary, Accenture Federal Services, considered race or sex in hiring. The company denies wrongdoing and will report Q4 2026 earnings on Oct 1. The DOJ claims AFS violated the False Claims Act by falsely certifying compliance with anti-discrimination laws.

Accenture agreed to pay $25 million to settle U.S. DOJ allegations of discrimination in hiring, promotion, and professional development through its DEI programs. The settlement is part of the DOJ's Civil Rights Fraud Initiative. Accenture denies liability but aims to avoid prolonged litigation. The DOJ claims Accenture considered race or sex in decisions and tracked progress towards workforce composition goals.

Accenture (ACN) stock fell 22% over the past year, despite revenue growth of 6.7% and a 15.8% operating margin. The company is expanding into new markets and making acquisitions, but its stock performance lags peers like IBM (IBM) and Booz Allen Hamilton (BAH). Accenture's guidance for fiscal 2026 includes 3-4% revenue growth, partly driven by acquisitions.

Accenture will pay $25 million to settle U.S. Justice Department claims it discriminated based on race and sex in hiring and promotions while holding federal contracts. The company denies wrongdoing and says the settlement is not an admission of liability. The Justice Department alleges Accenture used demographic targets and separate review processes for promotions. Accenture's federal contracts have also faced recent cuts by the Pentagon.