Infosys, TCS, HCL Tech: IT stocks zoom as Accenture posts encouraging Q4 results, ups revenue guidance

The BSE IT Index rallied as much as 1,179.72 points, or 2.76%, to hit the day's high of 43,830.69 levels. Among individual names, Infosys was trading 1.4% higher while TCS was up 1% at ₹4,332.45. 

The NIFTY IT index jumped as much as 2.88% to hit a high of 43,377.95 levels.

The company, which follows the September–August financial year, has upped its revenue guidance for financial year 2025 in the range of 3–6%, even as the company missed its FY24 growth target. Accenture provided guidance for FY25 that is higher than its FY24 guidance of 1.5% to 2.5%.

Accenture also unveiled a $4 billion share buyback on Thursday and beat quarterly earnings expectations thanks to strong demand for its services that help businesses adopt generative AI technology.

Accenture's generative AI business has been outpacing the growth in its other core businesses as organisations look to automation to curtail costs and improve efficiency.

Generative AI revenue stood at $900 million for the fiscal year, compared to $100 million last year. Bookings have shown robust quarter-on-quarter acceleration for the past four quarters, reaching a total of $3 billion for the year.

Accenture Q4 Results

For the fourth quarter, revenues were $16.4 billion, an increase of 3% in US dollars and 5% in local currency compared with the fourth quarter of fiscal 2023. GAAP operating income was $2.35 billion, compared to $1.91 billion for the fourth quarter of fiscal 2023, and operating margin was 14.3%, compared to 12.0% for the fourth quarter last year. 

Adjusted operating income was $2.46 billion compared to $2.38 billion for the fourth quarter of fiscal 2023, and adjusted operating margin was 15.0%, compared to 14.9% for the fourth quarter last year. 

GAAP diluted earnings per share (EPS) were $2.66, an increase of 24% over $2.15 for the fourth quarter of fiscal 2023. Adjusted EPS were $2.79, an increase of 3% over $2.71 for the fourth quarter of fiscal 2023. Operating cash flow was $3.39 billion, and free cash flow was $3.18 billion. New bookings were $20.1 billion.

For the full fiscal year, revenues were $64.9 billion, an increase of 1% in U.S. dollars and 2% in local currency compared with fiscal 2023. 

GAAP net income for the quarter was $1.72 billion, compared with $1.41 billion for the fourth quarter of fiscal 2023. Adjusted net income for the quarter was $1.80 billion, compared with $1.76 billion for the fourth quarter of fiscal 2023.

Accenture’s total cash balance at August 31, 2024 was $5.0 billion, compared with $9.0 billion at August 31, 2023.