IT stocks tumble after Accenture issues cautious FY26 guidance

Domestic IT stocks fell sharply after Accenture reported its Q4 and FY25 results and issued a cautious outlook for FY26.

The Nifty IT index fell 2.54% to 33,670.85, extending its losing streak to six sessions with a cumulative decline of 8.38%.

Oracle Financial Services Software dropped 4.19%, Coforge slipped 3.32%, Persistent Systems declined 2.92%, Infosys shed 2.87%, Mphasis fell 2.82% and Wipro lost 2.75%. Tech Mahindra was down 2.34%, LTIMindtree 2.26%, Tata Consultancy Services 2.11% and HCL Technologies 2.01%.

Accenture's Q4 FY25 revenue rose 7% year-on-year to $17.6 billion, supported by demand for AI-driven services. For FY26, the company projected revenue growth of 2%-5% in local currency, or 3%-6% excluding the U.S. federal business impact. It guided for full-year GAAP EPS of $13.19-$13.57 (up 9%-12%) and adjusted EPS of $13.52-$13.90 (up 5%-8%). The company expects to return at least $9.3 billion in cash to shareholders in fiscal year 2026.

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