TCS, Infosys, Wipro in focus ahead of Q2 earnings; what Accenture’s outlook signals

Indian IT services stocks such as Infosys, Tata Consultancy Services (TCS), Wipro, Tech Mahindra and HCL Technologies, among others, were in focus on Monday, October 5, following stronger-than-expected fourth-quarter results and an upbeat FY27 outlook from Accenture.

The global IT services major reported revenue of $18.7 billion for Q4 FY26, up 6% year-on-year in US dollar terms and 7% in local currency, while new bookings rose 5% in local currency to $22.2 billion.

Accenture also raised its revenue growth outlook for FY27 to 3%-6% in local currency, compared with the 2%-5% growth it had expected for FY26. The company expects an adjusted operating margin of 15.9%-16.1% for the year, while AI-led demand remains a key growth driver.

More than 400 clients started advanced AI work during FY26, highlighting continued spending on AI adoption and transformation services.

The commentary has provided some relief to investors worried about weak discretionary technology spending and the potential disruption from AI.

Accenture said, however, that the overall demand environment, including discretionary spending, had not meaningfully changed, while pricing pressure was visible in several areas in Q4 and competition is expected to remain intense.

The update will be closely watched ahead of TCS’ Q2 FY27 results later this week, which will provide the first major read-through on demand trends for Indian IT companies.

How IT stocks were faring in early session

After surging in the pre-open session, the NIFTY IT index was trading in the red in the early deals. At 09:21 AM, the NIFTY IT index traded 0.23% lower at 28,240 levels, with six constituents advancing and four declining.

Infosys was down over 1% at ₹1,023.10 on the NSE, while Coforge was up 0.29%. TCS was trading 0.12% higher at ₹2,077.50. Persistent Systems was up 2.29% at ₹5,485.50.

The NIFTY IT index has tumbled over 25% so far in calendar year 2026 (year-to-date).

What to expect in Q2 FY27 earnings

India’s top IT companies are likely to report muted revenue growth and broadly stable margins for the July-September quarter, as clients continue to keep discretionary technology budgets tight. Analysts said investors will closely track how quickly strong deal bookings translate into revenue and the extent to which AI is weighing on traditional IT services.

Research advisory UnearthInsight expects the top five IT companies to post 0.5%-1% quarter-on-quarter revenue growth in Q2 FY27, indicating little improvement from the April-June quarter.

“Q2 is not going to be any better than Q1… because we are not seeing any revival in client budgets or spending. Discretionary spending remains stuck amid geopolitical tensions, and decision cycles also remain long,” said Gaurav Vasu, Founder and CEO of UnearthInsight.

Gartner, however, expects the quarter to be “somewhat stronger” than the previous one, largely driven by previously awarded contracts moving into revenue-generating phases.

“However, market conditions remain broadly unchanged, with cautious discretionary spending and continued focus on productivity outcomes influencing purchasing decisions,” said Biswajit Maity, Senior Principal Analyst at Gartner.

“Based on current market trends, growth among leading IT services providers is expected to remain modest,” Maity said.

Vasu said deal bookings are likely to remain strong, but their conversion into revenue could take longer, with decision cycles expected to remain extended over the next 12-18 months.