IT stocks in focus after Accenture Q1 results beat estimates; outlook for 2026 positive

Indian IT stocks will be in focus on Friday after a leading IT player, Accenture Plc, announced its quarterly results on Thursday. The company’s $18.7 billion revenue came in at the higher range of the company’s guidance for the quarter. Taking the cues from results, shares of Indian IT players like TCS, Infosys, Tech Mahindra and HCL Technologies opened in green on Friday morning.

IT stocks are buzzing in trend amid multiple developments on the AI front and currency depreciation benefit. The upbeat results and steady guidance from Accenture are expected to boost investor confidence for Indian IT stocks.

Accenture results

The company’s topline rose 6% higher at $18.7 billion for Q1 FY26 (November to September) led by rising adoption of AI-led transformation projects. The adjusted EPS for the quarter increased 10% YoY to $3.94 per share, primarily led by strong operating margin expansion of 30 bps at 17%, ahead of the guidance of 15.9%. The new bookings for the quarter stood at $21 billion, up by 12% YoY in US dollars. The company also declared a dividend of $1.63 per share.

Outlook

The company expects full-year revenue growth to be in the range of 1% to 5% in local currency terms. After excluding 1% impact from the U.S federal business, the revenue growth is expected to be in the range of 3%-6%. Additionally, the operation margin is expected to be higher by 10 to 30 bps in the range of 15.7% to 15.9%.

Key highlights

Advanced AI bookings stood at $2.2 billion, up twice from the previous year's same quarter. The advanced AI revenue stood at $1.1 billion for the quarter. Management also highlighted the ongoing talent rotation and aims to increase the headcount in the US and Europe throughout the year. The management won't be reporting AI-related updates separately from the coming quarter, as AI has now become one of its core offerings for the business.