Infosys, TCS, Wipro Gain Up To 3% After Accenture Earnings Beat Estimates

Indian information technology (IT) stocks traded higher on Friday as Accenture Plc posted better-than-expected results, with Infosys, TCS, HCLTech, and Wipro registering gains of up to 3%.

Accenture Plc posted an 8% rise in revenue at $18 billion, beating market expectations, and its bookings increased by 6% to $22.1 billion, indicating steady deal flow.

On Friday, at 10:30 AM, Infosys’s share price was ₹1,248.80 (up 2.29%), TCS at ₹2,374 (up 0.76%), HCLTech at ₹1,342.60 (up 2.35%), and Wipro close to ₹190.49 (up 1.10%), each seeing modest intraday gains following the update.

Why Did Accenture’s Results Lift Indian IT Stocks?

Accenture’s earnings are widely seen as a read-through for global IT demand, and this time the message was relatively stable.

The company reported earnings per share of $2.93, up 4% from a year ago. It also raised its full-year revenue growth guidance to 4% to 6% in local currency, a slight improvement from its earlier forecast.

It also lifted its free cash flow outlook to between $10.8 billion and $11.5 billion. That signals confidence not just in demand, but also in execution.

What seems to be holding up is core spending. Clients continue to invest in cloud migration, data infrastructure, and system upgrades. These are essential projects that companies cannot easily delay.

There is also a gradual shift in how artificial intelligence (AI) is being used. Instead of pilot projects, more clients are now moving towards actual deployment. That typically translates into larger contracts, though the pace of scaling remains measured.

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What Are Analysts Saying About The Outlook?

Analysts are viewing it as positive news for Indian IT firms, but not a significant turnaround in sentiment.

Nomura said that demand in the financial services segment remains steady, but nothing has changed in the macro environment. It also said that work related to AI is starting to scale up, which can be a booster in the short term.

However, a wider recovery appears to still depend on external factors. Growth in key markets, including the US, remains a significant factor in determining demand.

There is also a view that while AI is opening new opportunities, it is not yet driving a sharp acceleration in spending. Large-scale adoption is taking time, particularly for complex organisations.

For now, the takeaway is fairly balanced. The sector is not weakening, but it is not seeing a surge either. Demand is steady, deal flow is intact, and AI is slowly adding to the pipeline, but a stronger upcycle may need clearer support from the global economy.

Sources:

Economic Times

Moneycontrol