Accenture shares surged a record 22% in US trading after the global IT services company reported stronger-than-expected quarterly results and gave an upbeat revenue outlook for fiscal 2027.
The rally also lifted US-listed shares of Indian IT companies, with Infosys American Depositary Receipts (ADRs) rising nearly 9% and Wipro ADRs gaining around 10% during early trading.
Accenture Posts $18.68 Billion Revenue
Accenture reported fourth-quarter revenue of $18.68 billion, beating analyst expectations of around $18.03 billion.
Consulting revenue stood at $9.28 billion, compared with expectations of approximately $8.86 billion.
Quarterly bookings also increased 4% year-on-year to $22.17 billion, indicating continued demand for technology transformation, consulting and AI-related services.
For the full fiscal year, Accenture reported revenue of $74.2 billion, an increase of 6% from the previous year.
Fiscal 2027 Outlook Beats Expectations
Investors responded particularly strongly to Accenture’s outlook for the new fiscal year.
The company expects fiscal 2027 revenue to grow between 3% and 6% in local currency. The midpoint of that range is above the average analyst expectation of around 3.9%.
The guidance provided fresh evidence that businesses continue to spend on technology services despite concerns that artificial intelligence could disrupt traditional IT consulting and outsourcing models.
Infosys And Wipro ADRs Rally
The positive Accenture results immediately spilled over into Indian IT companies traded in the US.
Infosys ADRs climbed nearly 9%, while Wipro ADRs gained around 10% during early US trading.
The companies are closely watched alongside Accenture because they have significant exposure to global technology spending, particularly from clients in the US and Europe.
Other global technology services companies also rallied, with Cognizant gaining around 8% and IBM rising about 3%.
AI Demand Helps IT Services Industry
Accenture’s results suggest that companies are not simply cutting technology spending because of AI.
Instead, businesses are increasingly hiring external technology partners to implement AI systems, automate processes and integrate new technologies into existing operations.
Accenture said demand for large-scale technology and AI transformation projects remained strong during the quarter.
This has provided some relief to investors who had been concerned that AI could eventually reduce demand for traditional consulting and software services.
Accenture Plans More Acquisitions
The company is also preparing to invest heavily in acquisitions.
Accenture expects to deploy approximately $5 billion on acquisitions during fiscal 2027 to accelerate its growth strategy.
The company has already announced several cybersecurity acquisitions and investments, reflecting its focus on areas such as AI, cloud, cybersecurity and digital transformation.
A Positive Signal For Indian IT Stocks
The Accenture rally is particularly significant for India’s IT services sector because the company is often viewed as an indicator of global enterprise technology spending.
The latest results could improve sentiment around Indian IT companies ahead of their upcoming earnings announcements.
However, Accenture’s performance does not guarantee similar results for Indian companies, as each company has different client exposure, service mix and regional performance.
Summary
Accenture shares jumped a record 22% after the company reported fourth-quarter revenue of $18.68 billion and forecast fiscal 2027 revenue growth of 3% to 6%. The strong outlook also lifted Indian IT stocks in the US, with Infosys ADRs gaining nearly 9% and Wipro ADRs around 10%. The results eased concerns about slowing technology spending and AI disruption.
