Accenture Warning Weighs on Indian IT Stocks

Accenture warned that expected US federal spending cuts would create a roughly 1–1.5% revenue headwind through August 2026, said it is cutting staff as it pivots to AI, and reported Q4 revenue of $17.6 billion while giving FY26 revenue-growth guidance of 2–5% that was below Street expectations. That cautionary outlook and guidance weighed on global and domestic IT stocks: the Nifty IT index fell over 1% (extending losses for a sixth session) and Infosys and Wipro ADRs dropped more than 2% in early US trade, with Infosys among intraday top losers on the Nifty 50. Infosys reported consolidated quarter-ending June 2025 revenue of Rs 42,279 crore and net profit of Rs 6,924 crore, and FY25 revenue of Rs 162,990 crore with net profit of Rs 26,750 crore; its shares traded roughly in the Rs 1,460–1,496 range and remain about 25–29% below 52-week highs. Broader market headwinds, including persistent FII outflows and other sector-specific shocks, further hurt sentiment. Analysts warned demand recovery is patchy and said Accenture’s muted near-term outlook poses downside risk to Indian IT growth forecasts, advising investors to exercise caution and await greater clarity.