IT stocks crash: Accenture’s weak outlook sparks sell-off in Infosys, TCS, Wipro

Domestic IT stocks witnessed a sharp sell-off on Friday after Accenture cut its FY26 revenue growth guidance and flagged a challenging demand environment, raising concerns over the near-term outlook for technology spending globally.

The Nifty IT index plunged more than 6 per cent to a fresh 52-week low of 26,634.50, before settling at 27,426.85 (down 3.65 per cent), making it the worst-performing sectoral index. The decline followed Accenture’s weaker-than-expected quarterly results and reduced full-year revenue growth guidance of 3-4 per cent, compared with 3-5 per cent earlier.

The weakness was broad-based, with all major IT stocks trading in the red, only except OFSS.

Infosys tumbled 7 per cent to end at ₹1,051.40 after hitting a 52-week low of ₹1,030, while Tata Consultancy Services (TCS) declined 3.55 per cent to ₹2,125 after hitting a 52-week low of ₹2,059.90. Wipro fell 4.3 per cent to a 52-week low of ₹174.89 before settling at ₹180.80.

Investor sentiment turned negative after Accenture lowered its FY26 constant-currency revenue growth guidance to 3-4 per cent from 3-5 per cent earlier. The company also reduced its commercial business growth outlook to 4-5 per cent from 4-6 per cent.

The earnings disappointment triggered a sharp reaction globally. Accenture shares plunged 18 per cent in the US overnight, marking their steepest single-day decline on record. Cognizant fell 11 per cent, while Capgemini declined nearly 9 per cent. Infosys ADRs dropped nearly 10 per cent and Wipro ADRs fell 3.6 per cent.

Shashwat Singh, Fundamental Analyst at Bajaj Broking, said the sell-off in Indian IT stocks was a direct reaction to Accenture’s guidance cut.

“Accenture has indicated that clients remain cautious on discretionary technology spending. Since Indian IT companies depend on the same global pipeline for technology projects, the guidance revision acts as a warning signal for the sector and has triggered investor selling,” Singh said.

Morgan Stanley said Accenture’s results pointed to a difficult macroeconomic environment that could extend into the next quarter. The brokerage noted that management commentary highlighted delayed decision-making by clients and the impact of geopolitical tensions, particularly in West Asia.

According to Morgan Stanley, the indirect impact of geopolitical uncertainty is being felt across geographies and industry verticals, increasing the risk of weaker FY27 guidance from Indian IT companies. The brokerage also said the impact could vary across companies depending on their exposure to affected sectors and regions.

Nomura expects the impact of West Asia-related uncertainty to spill over into Q1FY27 and possibly Q2FY27, as clients remain cautious on technology spending.

CLSA attributed the softer outlook to macroeconomic challenges rather than AI disruption, noting that companies dependent on discretionary spending, such as Infosys and Wipro, could face greater pressure.