Infosys, TCS, Wipro: IT stocks in focus on Accenture's upbeat quarterly results; all you need to know

After opening with decent gains, the stocks, however, turned flat.

Accenture beat Wall Street estimates for first-quarter revenue and profit on Thursday, on the back of growing demand for its services to help clients adopt AI-powered tools.

Accenture is leveraging generative AI across industries to help clients optimize operations, from predictive maintenance in manufacturing to automating workflow in advertising operations, the company said in a post-earnings call.

Due to an increase in projects utilising the service, its GenAI business recorded new bookings of $1.2 billion and about $500 million in revenue.

The company's new bookings, a key indicator of future revenue, rose to $18.7 billion for the first quarter from $18.4 billion a year earlier.

However, the management, as per news reports, in its commentary said that there has been no recovery in client spending, particularly in smaller deals, as they continue to prioritise the large transformational deals.

The company raised its annual revenue growth forecast to between 4% and 7% from its earlier estimate of 3%-6%. However, the mid-point is below analysts' expectations of 5.63%, according to data compiled by LSEG.

Accenture projected second-quarter revenue of $16.2 billion to $16.8 billion, the midpoint of which is below analysts' average estimate of $16.63 billion.

The IT provider said it has increased its data and AI workforce to 69,000 and plans to reach 80,000 by 2026, indicating growing demand for its services.

Following Accenture's results, the US-listed shares (ADRs) of Infosys Ltd. and Wipro Ltd. ended with gains of up to 4% on Thursday.

While the Infosys ADR ended with gains of 3.4%, the ADR of Wipro ended 2.3% higher.

Shares of Accenture ended 7% higher overnight after the company's revenue for the first quarter of financial year 2025 beat analyst expectations.