Explained - What do the Accenture results mean for Indian IT companies

Technology consulting firm Accenture Plc's fourth quarter results reported on Thursday evening sparked a rally in the US-listed shares of Indian IT firms Infosys and Wipro. The American Depository Receipts (ADRs) of both Infosys and Wipro were up 6% each overnight. Accenture's own shares rallied 16% overnight, while at the day's high, they were up as much as 22%.

Shares of other software firms, Cognizant, EPAM and Globant also gained between 6% to 6.5% each.

Accenture disclosed in its results that it booked more business

during the quarter than analysts had estimated. Proof that Artificial Intelligence is acting as a tailwind rather than a threat for these firms and that high technology efficiency is unlocking major new enterprise demand triggered the rally in these stocks during the Wall Street session.

For the quarter, Accenture delivered constant currency revenue growth of 7%, while for the full year, that figure stood at 5%, higher than the company's guidance of 3% to 4% growth. For fiscal 2027, the company expects revenue growth to be between 3% to 6% in constant currency terms.

"We continue to believe the opportunities related to AI are greater than the impact of AI-related efficiencies in our business, and we expect that to continue as AI enables enterprises to do much more," CEO Julie Sweet said during the earnings call.

Accenture signed a record 141 booking worth over $100 million or more during the quarter, taking the total new bookings to $22.4 billion, a growth of 4% from last year. The company said that over 400 clients initiated advanced AI projects during the fiscal gone by and that included nearly 100 new clients starting advanced AI work during the fourth quarter.

What Do Accenture's Results Mean For Indian IT?

According to brokerage firm Nomura, the macro environment is expected to remain dynamic and similar to what it was in financial year 2026.

In its note, Nomura's analysts noted that the West Asia situation's direct impact was a headwind which intensified in the fourth quarter, even as the indirect effect on discretionary spending stabilized.

"While AI is driving client productivity gains, which is a deflationary force, the same is being offset by incremental work and broader scope," the note said.

Nomura has a "buy" rating on Infosys and Cognizant among the largecap IT names, and a "buy" on Coforge among the midcap IT stocks.

The Nifty IT index was the only sectoral gainer in the week gone by, finishing with gains of 0.5%. Only three stocks on the index delivered positive returns such as Infosys (Up 3.5%), Coforge (Up 2.35%), and Mphasis (Up 0.7%). Indian IT stocks will react to these results from Accenture on Monday, as the stock markets are shut on Friday on account of a holiday.