TCS, Infosys, Wipro and other IT stocks in focus after Accenture's Q1 revenue beat and upgraded guidance

Indian IT stocks like TCS, Infosys, and HCL Tech are likely to be in the spotlight on Friday following Accenture's better-than-expected Q1 earnings and upgraded revenue guidance.

Accenture’s first-quarter revenue of $17.7 billion surpassed analyst estimates of $17.12 billion, driven by strong demand for its AI-powered solutions that help businesses optimize operations.

The company reported new bookings of $18.7 billion, slightly higher than $18.4 billion in the same quarter last year. Annual revenue growth guidance was also raised to 4%-7%, exceeding earlier projections of 3%-6%.


Following these results, Infosys’s ADR surged 3.58% to $23.46 on Thursday, while Wipro’s ADR climbed nearly 2.4% to $2.7171. American Depositary Receipts (ADRs) represent equity shares of foreign companies and allow American investors to trade them on U.S. exchanges.

Accenture highlighted its focus on leveraging Generative AI to streamline operations across industries, from predictive manufacturing maintenance to automating advertising workflows. Businesses continue to invest heavily in scaling AI projects and digitizing core processes to improve efficiency and reduce costs, benefiting IT service providers like Accenture.

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Earlier on Thursday, Indian IT stocks received a severe hammering after Street appeared displeased with the hawkish commentary of the US Federal Reserve. The US Central Bank cut policy rates by 25 bps and said that its target of 2% inflation may not be achieved in 2025. There could now be only two cuts of 25 bps in 2025 as against the earlier expectation of 4 downward revisions suggested by the Fed's dot plot.

The Nifty IT index closed with declines of 1.3% at 44,954.20. Seven counters fell in the 10-stock index with LTIMindtree as the biggest loser, falling by 5.3%. Infosys finished at Rs 1,948.50 on the NSE, down by Rs 30.65 or 1.55% over the Wednesday closing price. Meanwhile, Wipro closed flat at Rs 312.75.

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