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Shares of Indian IT stocks including Persistent Systems, Mphasis, Wipro and TCS gained up to 3% on Monday after Accenture reported strong Q4 results in the US.
What happened: Accenture is one of the world’s biggest IT services companies and works with many of the same global clients as Indian IT firms. Its numbers are often seen as an early indicator of how much companies are willing to spend on technology.
What Accenture said: the biggest takeaway was that AI is creating more business opportunities than it is taking away. Accenture said companies are using AI not just to cut costs, but also to do more things, creating new work for IT firms.
That helped calm one of the biggest fears that AI will make traditional IT services less valuable.
The numbers: FY26 revenue grew 5% in local currency, while Q4 revenue came in above the top end of its guidance.
More importantly, the company recorded 141 client bookings worth over $100 million each, a new quarterly high. Accenture also said bookings with eight emerging AI and data partners more than tripled during the year.
For FY27, Accenture expects revenue to grow 3–6% in local currency. That isn't blockbuster growth, but it suggests that corporate technology spending is holding up even as AI changes how IT work gets done.
Expectations from Indian IT earnings: TCS will kick off the Q2 earnings season on October 8, followed by HCLTech on October 12 and Infosys on October 23. Analysts broadly expect another muted quarter for large IT companies, as clients remain careful about spending on projects that aren't essential.
