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HomeMarket NewsInfosys, TCS, other IT peers could react to Accenture results; Here's what analysts said
HSBC wrote in its note that Accenture's second quarter results provide limited support to revive sentiments around the IT sector, as bookings growth continues to decelerate.
Shares of Indian IT companies, Infosys Ltd., TCS Ltd., HCLTech Ltd., Wipro Ltd., and others, will be reacting on Friday, March 20, to results reported by Accenture Plc on Thursday evening.
Accenture has revised its financial year 2026 revenue growth guidance band to 4% to 6% from 3% to 6% earlier, excluding the 1% headwind from the US Federal business.
Here's how this could have a possible impact on Indian IT:
Citi
The brokerage believes that Accenture's guidance does not incorporated in any significant economic disruption, while its Trailing 12-month bookings were up 4% year-on-year in US Dollar terms.
The Nifty IT index is trading at 16 times its estimated earnings for financial year 2027, and Citi said that the view on the sector remains cautious.
Nomura
For Indian IT, Nomura expects the momentum in financial services to continue, but a sharp growth revival hinges on macro improvement.
It prefers Infosys and Cognizant among largecap stocks, and Coforge and eClerx among Midcap and Smallcap IT stocks.
HSBC
The brokerage wrote in its note that Accenture's second quarter results provide limited support to revive sentiments around the IT sector, as bookings growth continues to decelerate.
Demand environment in 2026 is similar to 2025, although AI is a net tailwind, as Accenture is gaining market share as per the management.
HSBC said that a 4% to 5% depreciation in the currency recently, provides support to IT sector earnings and that valuations for these companies are close to a trough.
While Nuvama sees the results as a minor incremental positive to Indian IT, Motilal Oswal sees a "neutral" read-through for Indian IT as client budgets for 2026 are expected to be unchanged.
Shares of Infosys, Mphasis, Coforge, Oracle Financial, HCLTech and TCS, all fell between 3% to 4% on Thursday, while others fell between 1.5% to 2.5%.
TCS has been the worst performing IT stock so far in March, declining over 10% so far, while Infosys, Coforge, and Oracle Financial are down between 6% to 8%.
