Indian IT stocks, Infosys, TCS, others rise in response to Accenture results, guidance

India's IT companies, Infosys Ltd., TCS Ltd., Tech Mahindra Ltd

., Wipro Ltd., HCLTech Ltd. among other large and midcap names saw gains in early trading on Friday, December 19, in response to Accenture's quarterly results that were reported on Thursday after Indian market closing hours.

Shares of Infosys are trading with gains of 1%, while those of Persistent Systems, TCS, Wipro are trading with gains of 0.5% to 1%.

Accenture, despite a good first quarter, did not change its guidance for the full year revenue growth, keeping it in the range of 2% to 5%. The guidance excludes the 1% impact from business emerging from the US government.

The IT services provider also left its organic growth guidance for financial year 2026 unchanged between 0.5% to 3.5%.

For the first quarter, Accenture's results were better than expectations, with revenue growth of 5%.

However, the management reiterated that there is still no change in discretionary demand, and that overall spending remains consistent with the previous year with no macro tailwinds or catalysts in sight yet.

GenAI continued to gain traction for Accenture, with the segment contributing 11% to new bookings and 6% to the overall topline. Advanced AI bookings increased by 76% from last year to $2.2 billion. Advanced AI revenue more than doubled from last year to cross the billion dollar mark at $1.1 billion.

Accenture has announced that it will discontinue the disclosures of AI as a separate metric as it is now embedded across nearly all client engagements.

Brokerage firm Motilal Oswal believes that margins will be important to monitor as the industry will move to outcome-based pricing, and that the March-April 2026 budget reset period may act as an initial indicator.

The brokerage expects AI services demand to begin to improve from mid-2026 as hardware-led AI capex intensity moderates.

The Nifty IT index has been staging a rebound over the last one month, trimming its losses for 2025. The index is up 7.5% over the last one month, has gained in five out of the last six trading sessions and has trimmed its losses for 2025 down to 10.5%.