Accenture’s fourth-quarter report did more than just clear analyst hurdles; it sent shockwaves through the US-listed Indian IT sector. Infosys and Wipro American Depositary Receipts jumped 6% each overnight, while Accenture’s own shares climbed 16% to close, touching a high of 22% during the session. Cognizant, EPAM, and Globant followed suit, gaining between 6% and 6.5%.
The numbers behind the rally are specific. Accenture delivered 7% constant currency revenue growth for the quarter, a figure that stands out against a full-year growth rate of 5%. That full-year number exceeds the company’s prior guidance of 3% to 4%. New bookings hit $22.4 billion, a 4% year-on-year increase, driven by a record 141 deals worth over $100 million each. The firm noted that over 400 clients initiated advanced AI projects in the past fiscal year, with nearly 100 new entrants in Q4 alone.
CEO Julie Sweet addressed the prevailing fear that AI would cannibalize revenue. “We continue to believe the opportunities related to AI are greater than the impact of AI-related efficiencies in our business,” she stated on the earnings call. The data supports this view: AI is acting as a demand generator rather than a cost-cutting tool that shrinks the pie. For fiscal 2027, Accenture projects constant currency revenue growth between 3% and 6%.
Nomura, in a post-earnings note, suggests the macro environment for Indian IT will remain dynamic, similar to FY 2026. The brokerage highlighted that while AI drives productivity gains (a deflationary force), this is being offset by incremental work and broader project scope. Nomura maintains a “buy” rating on large-cap names Infosys and Cognizant, as well as mid-cap Coforge. The Nifty IT index had already bucked the trend earlier in the week, posting a 0.5% gain as the only sectoral gainer, with Infosys, Coforge, and Mphasis leading the charge. Markets in India are shut on Friday, but traders will be watching Monday’s opening bell for these US-listed cues.