IT stocks in focus after Accenture revises its full year revenue guidance to 3-5%; new bookings jump 6% to $22 billion

Indian IT stocks will remain in focus on Friday after global IT and consulting firm Accenture PLC reported its quarterly earnings on Thursday. The company posted record contract bookings and achieved the revenue guidance for the quarter. Moreover, the company increased its revenue guidance for the full year from 2-5% earlier to 3-5% now. The IT stocks across the globe witnessed a brutal selloff after the newer AI models were said to replace the traditional software services business.

Accenture results

The company posted revenue of $18 billion, up 8% in dollar terms and 4% in the local currency, aided by strong growth in the guided services segment at 10% YoY at $9 billion. The consulting business mopped $8.86 billion in revenue, up by 7% YoY in dollar terms.

Geographically, America’s business contributed the majority of the revenue at $8.9 billion up 4% from the previous year. While the EMEA and Asia Pacific regions witnessed strong growth of 13% and 12%, respectively.

At the industry level, the financial services and Communications media segment stood out as the top gainers with 13% YoY growth, while the product business category mopped up $5.5 billion as the top contributor to the revenue.

At the operating level, the operating profit margin for the quarter stood at 13.8% vs 13.5% in the previous year’s same quarter, expanding by 30 basis points. Lastly, the net income for the quarter stood at $1.86 billion, slightly higher than the $1.82 billion in the previous year’s last quarter.

Guidance and outlook

The company revised its growth outlook for the full year at 3%-5% for the topline growth in local currency terms. For the third quarter, the company expects revenue to be in the range of $18.3 billion to $19 billion. At the operating level, the full-year operating margin guidance remains unchanged at 15.7-15.9%. The company expects the operating cash flow to increase to $11.5 billion to $12.2 billion, significantly higher than the previously guided at $10.8 billion to $11.5 billion in Q1FY26 (December 2025).

NIFTY IT

The NIFTY IT index is down nearly 30% from the recent top levels touched in February 2026 and 37% lower from the record high levels. At the stock-specific level, TCS is the top laggard in the NIFTY index, falling nearly 50% from the record high levels, followed by Wipro, which is down 39%, Infosys, down by 37%, HCL Technologies, down by 31%, and Tech Mahindra, down by 30% from their respective record high levels.