Infosys, TCS, Wipro: IT stocks trade mixed after Accenture Q2 results, earnings call; check key details

Shares of information technology (IT) companies, including Infosys, Wipro and Tata Consulting Services (TCS), traded mixed on Friday after IT services and consulting major Accenture released its second-quarter results. The company follows the September-August fiscal calendar.

Accenture's revenue advanced 5% year-on-year to $16.7 billion in the December-February quarter, in line with the firm's guided range of $16.2 billion to $16.8 billion.

The company narrowed the full-year revenue growth outlook's lower band to 5% to 7% in local currency, from 4% to 7% earlier.

"Revenues for the second quarter of fiscal 2025 were $16.66 billion, an increase of 5% in U.S. dollars and 8.5% in local currency, and were at the top end of the company’s guided range of $16.2 billion to $16.8 billion," the company said in a press release.

New bookings for the quarter under review were $20.91 billion, reflecting a 3% decline in US dollars and a flat local currency compared to the year-ago quarter.

Why did Accenture's shares close in the red?

Accenture shares closed 7.28% lower on the New York Stock Exchange post-earnings.

The company said that its work for the US government has slowed due to Elon Musk's cost-cutting push.

In an earnings call, Sweet said that it believes that the company's work for federal clients is mission critical. "We anticipate ongoing uncertainity as the priorities of government evolve and these assessments unfold."

In the updated risk factors in the earnings report, the company said its "work with government clients exposes the company to additional risks inherent in the government contracting environment."

Here's how Indian IT stocks reacted

Reacting to the development, Infosys and Wipro shares fell 1% and 0.13%, respectively. Meanwhile, other components of the NIFTY IT index, which is up 0.02%, traded in the green, with TCS gaining 0.52% and Tech Mahindra up 0.74% until 10:16 am.

Accenture's gross margin (gross profit as a percentage of revenues) for the reporting quarter was 29.9%, as against 30.9% a year back.

Commenting on earnings, Accenture Chair and CEO Julie Sweet said, "Our second quarter results demonstrate that we continue to deliver on our strategy to lead reinvention for our clients and return to strong growth in FY25, with broad-based growth across markets, industries, and the types of work our clients seek from us."

"The trust and confidence in our unique strengths and capabilities is reflected in 32 clients with quarterly bookings greater than $100 million and we are very pleased to have another milestone quarter in Gen AI with $1.4 billion in new bookings. Our continued growth is made possible by the extraordinary work of our more than 800,000 people around the world who focus on delivering value to our clients every day," she added.

Accenture declared a quarterly dividend of $1.48 per equity share for shareholders on record on April 10, 2025. The dividend will be paid on May 15, 2025.

In the third quarter of FY25, Accenture forecasts revenues between $16.9 billion and $17.5 billion.