CTSH

Impact of New Fee on IT Companies: U.S. President Trump's $100,000 fee for H-1B worker visas, effective from September 21, 2025, will primarily affect large IT firms like Cognizant and Infosys, which heavily rely on this visa for hiring foreign workers.

Concerns Over H-1B System Manipulation: The White House's proclamation highlights that IT companies have manipulated the H-1B system, increasing their share of H-1B workers from 32% in 2003 to over 65% in recent years, which has negatively impacted American workers in tech fields.

Legal Challenges to the Fee: Twenty state attorneys general have filed a lawsuit against the Trump Administration, arguing that the new fee was implemented without Congressional authorization and bypassed necessary legal processes.

Adjustment of Status Exemption: Foreign applicants already in the U.S. can avoid the new fee through an "Adjustment of Status," while those applying from abroad via "Consular Processing" will be required to pay the fee.

Earnings Report Anticipation: Accenture is set to report its first-quarter fiscal 2026 results on December 18, with earnings expected to grow by 4.2% year-over-year to $3.74 per share and revenues projected at $18.6 billion, reflecting a 4.9% increase.

Analyst Confidence and Stock Performance: Analysts have shown increased confidence with upward revisions in earnings estimates, although Accenture's stock has underperformed compared to its industry peers, with a 23% decline over the past year.

Financial Position and Acquisition Strategy: Accenture maintains a strong liquidity position with $11.5 billion in cash and low current debt, but faces integration risks from its aggressive acquisition strategy, which could impact long-term growth.

Investor Caution Recommended: Given the challenges ahead of the earnings release, investors are advised to refrain from buying ACN stock and to monitor share price movements post-earnings for a better entry point.