Accenture’s weaker FY26 guidance and concerns over global technology spending trigger a sharp sell-off in IT stocks
Indian IT stocks are likely to face renewed selling pressure on Friday after a steep overnight decline in Accenture shares and weakness in Indian IT ADRs raised fresh concerns about the pace of recovery in global technology spending.
Accenture shares plunged nearly 18 percent in US trading after the global IT services giant lowered its FY26 revenue growth guidance and highlighted revenue headwinds arising from the situation in West Asia. The company also reported a decline in new bookings, adding to investor concerns about near-term demand.
The negative sentiment spilled over to Indian technology stocks listed in the United States. Infosys ADR fell 9.7 percent, while Wipro ADR declined 3.6 percent, indicating a potentially weak opening for the domestic IT sector.
The pressure on IT stocks comes despite a relatively strong broader market backdrop. Indian benchmark indices ended higher on Thursday, supported by easing crude oil prices and positive global cues.
Accenture reported third-quarter revenue of $18.7 billion, largely in line with market expectations, while earnings per share exceeded estimates. However, investors focused on the company’s lowered growth outlook and softer demand commentary. New bookings slipped to $19.3 billion compared to $19.7 billion a year ago.
Brokerages broadly attributed the weaker outlook to macroeconomic and geopolitical challenges rather than disruption from artificial intelligence adoption.
CLSA said the guidance cut reflects broader economic weakness, while noting healthy managed-services growth and rising headcount. However, it flagged a 14.7 percent year-on-year decline in Accenture’s order book and reiterated its preference for HCLTech over Infosys due to stronger exposure to cost-optimisation programmes.
HSBC said Accenture’s revised outlook suggests demand conditions remain challenging, with disruptions in West Asia emerging as a fresh growth headwind. The brokerage added that immediate growth triggers for Indian IT companies remain limited, although valuations are approaching cyclical lows.
Nomura noted that ongoing geopolitical tensions could affect revenue growth and deal bookings in the near term. It continues to prefer Infosys, Cognizant, Coforge and eClerx.
Jefferies maintained its underweight stance on the sector, warning that Accenture’s outlook could trigger further earnings downgrades for Indian IT firms. The brokerage expects companies to focus more aggressively on acquisitions and client additions to drive growth amid continued uncertainty surrounding macroeconomic conditions and AI-related spending.
With global technology demand still uneven and investor sentiment turning cautious, Indian IT stocks are expected to remain in focus in Friday’s trade.
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