TCS, Infosys, Wipro, other IT stocks in focus as Accenture cuts FY26 guidance; ADR crashes up to 10%

Shares of information technology companies such as TCS, Infosys, Wipro, HCL Tech and Tech Mahindra will be the focus of trade on Friday, as Accenture reintroduced concerns over weakness in discretionary technology spending, after cutting the upper end of its annual revenue growth forecast.

As a result, Infosys ADR fell by 10%, while Wipro’s ADR fell by around 4%.

Accenture Q3 results, guidance

Accenture shares fell 11% after the consulting major revised its FY26 revenue growth guidance to 3%-4%, compared with its previous estimate of 3%-5%. The company also projected fourth-quarter revenue of $17.75 billion-$18.4 billion, which fell short of Wall Street expectations of $18.47 billion, according to LSEG data.

For the third quarter, Accenture posted earnings per share of $3.80, compared with $3.49 in the same period last year, beating analysts’ expectations. Revenue rose 5.6% year over year to $18.7 billion, though it came in slightly below estimates of $18.76 billion.

Total bookings fell 1.9% to $19.32 billion during the quarter. A 15% decline in managed services bookings weighed on the overall figures, although this was partially offset by a 13% increase in consulting bookings.

Accenture also raised its full-year adjusted earnings per share forecast to $13.78-$13.90. The company has maintained its operating cash flow and free cash flow guidance and continues to expect annual free cash flow in the range of $10.8 billion to $11.5 billion.

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What does Accenture Q3 mean?

Despite continued investment in artificial intelligence and cybersecurity, Accenture’s soft outlook reinforces the view that enterprises remain cautious on discretionary spending related to IT consulting and digital transformation projects.

The development is closely watched by Indian IT companies, which generate a significant portion of their revenue from North America and compete with Accenture for large-scale digital transformation contracts.

Infosys is focusing on artificial intelligence to counter pricing pressures in its traditional services business. The company has expanded its capabilities in AI engineering, data and cloud through platforms such as Topaz and Cobalt, while also strengthening partnerships with OpenAI, Microsoft and Nvidia.

Management said deployment of AI tools, including GitHub Copilot, among more than 30,000 developers is helping to create new AI-led opportunities and offset productivity-driven pricing pressures.

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For FY27, Infosys has guided for constant currency revenue growth of 1.5%-3.5% and expects the sequential growth to be supported by the contribution of large deal wins and acquisitions. Still, the stock has fallen nearly 31% this year amid concerns about declining enterprise technology spending.

Wipro, meanwhile, continues to face a more challenging growth environment. Goldman Sachs recently said that FY27 could be the company’s fourth consecutive year of revenue declines and cut its revenue and earnings estimates following the quarterly results. The brokerage also noted that Wipro’s management commentary has a broadly neutral read-through for the broader Indian IT sector.

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