Shares of major Indian IT services companies such as Infosys, TCS, Wipro, LTIMindtree, HCL Technologies, and Tech Mahindra were in focus on Friday, December 20, following strong quarterly results posted by multinational IT giant Accenture. After a positive opening, however, the stocks turned flat during the trading session.
Accenture reported a strong first-quarter performance, surpassing Wall Street estimates for both revenue and profit. The growth was driven by rising demand for its AI-powered services, with the company leveraging generative AI across various industries. For example, Accenture is using AI tools to optimize operations, from predictive maintenance in manufacturing to automating workflows in advertising. The company reported $1.2 billion in new bookings and about $500 million in revenue from its generative AI business, reflecting growing client interest.
In its earnings call, Accenture raised its annual revenue growth forecast to between 4% and 7%, up from the previous range of 3%-6%. However, the midpoint of this forecast is slightly below analysts’ expectations of 5.63%. The company also projected second-quarter revenue to be in the range of $16.2 billion to $16.8 billion, with the midpoint falling below the analyst consensus estimate of $16.63 billion. Despite this, Accenture’s growth in its data and AI workforce — set to increase from 69,000 to 80,000 by 2026 — signals a growing demand for AI-related services.
In response to Accenture’s strong results, the US-listed shares (ADRs) of Infosys and Wipro saw gains, with Infosys’ ADR climbing 3.4% and Wipro’s ADR rising 2.3%. Meanwhile, Accenture’s stock ended 7% higher, reflecting investor optimism about its future prospects and the overall AI-driven growth in the IT services sector.
