Accenture plans to sell Chinese operations for up to $1.5b

Accenture is considering the sale of its China business, which could be valued at $1.5 billion. The company has engaged JPMorgan to review the potential sale.

Accenture (ACN) is considering selling its Greater China business for up to $1.5B, hiring JPMorgan for a strategic review. The move comes amid regulatory challenges in China and mixed growth prospects. ACN's stock is down 11.42% YTD, with a Moderate Buy consensus and a $226.90 price target.

Accenture is considering selling its China business for up to $1.5B, with JPMorgan assisting. The business spans mainland China, Hong Kong, and Taiwan. Accenture expects 3-6% revenue growth in 2027, higher than analyst forecasts. The company has also tightened AI spending limits for employees.

Accenture is considering selling its China operations, valued at up to $1.5 billion, according to the Financial Times. The company has hired JPMorgan to review the business, which includes Taiwan, Hong Kong, and mainland China. Accenture may retain a minority stake and has forecast 2027 revenue growth of 3% to 6%.

Accenture's AI strategy focuses on long-term managed services, not just initial consulting. RBC highlights the shift from 'build' to 'run' work, which generates recurring revenue. RBC maintains an outperform rating and $240 price target, up from $227.42, contingent on durable AI demand.

Accenture has acquired UK-based Sagacity Solutions, a data and customer intelligence firm, to enhance its AI-driven customer intelligence operations. The deal adds 140 employees to Accenture Song's UK & Ireland team. Financial details were not disclosed.