Pzena Investment Management, LLC — International Value Composite on Accenture plc
Thesis
Pzena believes fears that AI will structurally impair Accenture are excessive because the company is concentrated in consulting-led transformation work that combines engineering with business expertise. Many enterprises remain early in AI adoption, and Pzena believes large transformation programs are being deferred rather than eliminated as direct AI spending temporarily crowds out other technology budgets. Accenture should therefore be well positioned to capture subsequent implementation work, while dividends and buybacks provide meaningful shareholder returns during the transition.
“We believe that Accenture is well positioned to capture it when those programs begin.”
Key risks
- AI-driven price deflation and disintermediation of IT services
- Near-term organic-growth weakness and elevated acquisition spending