Synopsis
Indian IT stocks, including TCS and Infosys, tumbled up to 8% after Accenture lowered its annual revenue growth forecast, signaling continued caution in discretionary technology spending. Accenture's Q3 results showed mixed performance, with earnings surpassing expectations but revenue slightly missing estimates, impacting global IT sector sentiment.Listen to this article in summarized format
TCS, India's largest IT company, dipped 5.4% to their day's low of Rs 2,083, while Infosys tumbled 8% to their day's low of Rs 1,041 on the BSE. Wipro shares were down over 4%, while HCL Tech, and Tech Mahindra were down over 5% each. Nifty IT index tumbled 6%, the worst performing index on June 19. Overnight, Infosys ADRs fell 10%, while Wipro ADRs dropped nearly 4%.
Accenture Q3 results, guidance
The sell-off followed an 11% plunge in Accenture's shares after the consulting major revised its FY26 revenue growth guidance to 3%-4%, compared with its earlier outlook of 3%-5%. The company also projected fourth-quarter revenue of $17.75 billion-$18.4 billion, below Wall Street expectations of $18.47 billion, according to LSEG data.For the third quarter, Accenture posted earnings per share of $3.80, compared with $3.49 in the same period last year, surpassing analyst expectations. Revenue increased 5.6% year-on-year to $18.7 billion, though it came in slightly below estimates of $18.76 billion.
Total bookings fell 1.9% to $19.32 billion during the quarter. A 15% decline in managed services bookings weighed on the overall figure, although this was partly offset by a 13% rise in consulting bookings.
Accenture also raised its full-year adjusted earnings per share forecast to $13.78-$13.90. The company left its operating cash flow and free cash flow guidance unchanged and continues to expect annual free cash flow in the range of $10.8 billion to $11.5 billion.
