Infosys shares tumble over 8%, hit 52-week low as Accenture's guidance cut rattles investors

After a brief relief rally earlier this week, investor sentiment toward IT stocks took a fresh hit on Friday, June 19, after global IT consulting major Accenture lowered its revenue growth forecast and projected quarterly sales below Wall Street estimates.

Accenture said the ongoing conflict in Iran weighed on its consulting business in the Middle East, resulting in a $400 million hit to its regional operations during the third quarter.

The company also warned of a further impact in the fourth quarter, underscoring the broader disruption the conflict has caused to businesses globally.

The Dublin-headquartered firm now expects annual revenue growth of 3% to 4%, compared with its earlier guidance of 3% to 5%. Following the announcement, Accenture shares plunged more than 17%, sparking a sell-off across the global IT sector.

Indian IT ADRs, including Infosys and Wipro, also declined sharply in overnight trading, reflecting weak investor sentiment.

The spillover effect was evident in domestic markets on Friday, with the Nifty IT index plunging nearly 6%. Infosys shares dropped more than 8.6% to hit a 52-week low of 1,030 apiece on the NSE in the early trade.

Other frontline IT stocks, including TCS, HCLTech, Wipro, and Tech Mahindra, also traded sharply lower.

What Accenture management said

Accenture CEO Julie Sweet said the indirect impact of the Iran conflict began to materialise only in the past few weeks and that the outlook remains uncertain.

She noted that the automotive sector, a key vertical for Accenture, was already facing headwinds before rising fuel prices linked to the conflict added further pressure.

Beyond the geopolitical situation, demand for IT services has been weighed down by broader economic uncertainty, prompting clients to remain cautious on discretionary technology spending. At the same time, growing adoption of artificial intelligence is reshaping spending priorities across the sector.

According to Phil Fersht, chief analyst at HFS Research, Accenture's results indicate that enterprise technology spending is increasingly concentrated around targeted AI investments, while broader consulting and digital transformation projects continue to face pressure.