Accenture Cuts Outlook, Indian IT Stocks Tumble Up to 7%

Indian information technology stocks slid as much as 7% on Friday after Accenture lowered its annual revenue forecast, feeding concerns that the global slowdown is deepening, dragging outsourcing demand.

Tata Consultancy Services fell more than 5%, Infosys dropped over 7%, and Tech Mahindra lost more than 4%. The Nifty IT index slid more than 5%, its sharpest single-day decline in months.

Accenture, the Dublin-based giant, trimmed its revenue growth guidance for the fiscal year ending August 2026 to a range of 3% to 4%, down from the prior view of 4% to 5%. The company reported third-quarter revenue that missed consensus by about $90 million and took a $100 million hit from the Middle East, Chief Executive Officer Julie Sweet said on CNBC.

“We missed revenue consensus by $90 million, and we had a $100 million impact from the Middle East,” Sweet said.

Citi Research kept a cautious view on the Indian IT sector, pointing to the valuation gap. The Nifty IT trades around 16 times one-year forward earnings, while Accenture trades at 10 times, the brokerage noted.

“We have been cautious given AI disruption, increased competitive intensity, GCC trends, etc.; the macro uncertainty increases the challenges near term,” Citi said in a note.

The selloff hit Infosys especially hard. The stock carries an Alpha Score of 57 out of 100 from AlphaScala, the label Moderate. At current prices, the market is pricing in deeper margin compression than the company has guided for. Accenture's guidance cut reinforces the view that enterprise spending remains under pressure in the U.S. and Europe.

Infosys reports first-quarter results in July. Investors will watch for management's commentary on consulting and discretionary spending, the segments most exposed to Accenture's warning. The next concrete catalyst is the company's own revenue guidance, due with its quarterly print.