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Accenture subsidiary wins $789M Navy cybersecurity contract

EditorIsmeta Mujdragic
Published 05/09/2024, 10:16 AM
© Reuters
ACN
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ARLINGTON, Va. - Accenture (NYSE:ACN) Federal Services (AFS), a subsidiary of Accenture (NYSE: ACN), has secured a ten-year contract valued at $789 million to enhance cybersecurity for U.S. Navy maritime forces. The contract involves implementing unified cybersecurity operations across the Navy's SHARKCAGE environment to protect critical defense assets.

AFS will equip the Navy with SHARKCAGE systems that integrate commercial hardware and software to deliver defensive cyberspace operations analytics across various Navy networks. This will include Information Technology-21, ONENet, and the Navy/Marine Corps Intranet. The company's responsibilities extend to the design, testing, production, delivery, and installation support of these systems, as well as providing integrated logistics support.

The initiative is aimed at strengthening the Navy's cybersecurity posture by providing advanced attack sensing and warning capabilities. Rick Driggers, AFS managing director and cyber practice lead, emphasized the importance of network interconnectedness in safeguarding sensitive military data and defense assets.

Paul Ott, another AFS managing director, highlighted that the work within the SHARKCAGE framework will enhance the Navy's cyber monitoring and decision-making processes. The contract includes a base period of five years, with the option to extend for an additional five years.

Accenture Federal Services is recognized for empowering federal agencies to address challenges, improve outcomes, and build secure digital cores. With approximately 14,000 employees, AFS leverages the global network of Accenture to deliver innovative solutions to its clients.

The information for this article is based on a press release statement from Accenture Federal Services.

InvestingPro Insights

As Accenture Federal Services (AFS) secures a substantial contract to bolster the cybersecurity of U.S. Navy maritime forces, investors might be curious about the financial health and market performance of its parent company, Accenture (NYSE: ACN). According to the latest data from InvestingPro, Accenture boasts a robust market capitalization of $196.16 billion, reflecting its significant presence in the market.

An InvestingPro Tip highlights that Accenture has maintained dividend payments for 20 consecutive years, with a dividend yield as of the most recent data standing at 1.65%, showcasing the company's commitment to returning value to its shareholders. Additionally, the company's P/E ratio stands at 27.96, which, while indicating a premium valuation, could be justified by Accenture's position as a prominent player in the IT Services industry and its consistent profitability over the last twelve months.

Accenture's revenue growth over the last twelve months as of Q2 2024 was 2.26%, a modest figure that suggests a stable, albeit not rapid, top-line expansion. This steady growth, coupled with a solid gross profit margin of 32.58%, underpins the company's financial resilience. Moreover, the company's stock generally trades with low price volatility, an InvestingPro Tip that may appeal to investors seeking stability in their portfolio.

For those looking for more detailed analysis and additional insights, InvestingPro offers an array of InvestingPro Tips for Accenture, with PRONEWS24 as a coupon code to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Among the 12 InvestingPro Tips available, investors can learn about the company's earnings revisions, debt levels, and more, to make informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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