By Sanjana B

Copyright thehindubusinessline

Accenture on Thursday reported its Q4 and full-year 2025 results, with quarterly revenues of $17.6 billion, up 7 per cent in US dollars and 4.5 per cent in local currency, and full-year revenues of $69.7 billion, a $4.8 billion or 7 per cent increase in both US dollars and local currency.

Accenture’s results serve as a bellwether for Indian IT, signalling continued enterprise spending on cloud, AI, and consulting services.

Experts, however, caution that macroeconomic pressures, US outsourcing policies, and hiring slowdowns could temper near-term momentum. Overall, Indian IT is expected to continue leveraging AI and managed services to drive growth, even amid broader global IT spending headwinds.

New bookings

The IT giant recorded new bookings of $21.3 billion for the quarter and $80.6 billion for the year, including GenAI bookings of $1.8 billion for the quarter and $5.9 billion for the full year.

Looking ahead to FY26, Accenture expects full-year revenue growth of 2 per cent to 5 per cent in local currency. Excluding a 1 per cent to 1.5 per cent impact from its US federal business, the company anticipates growth of 3 per cent to 6 per cent in local currency.

This growth, driven by robust demand for AI and strategic consulting, surpassed analyst expectations.

A read-through

According to Bhavik Joshi, Business Head at INVasset PMS, while tier 1 companies like TCS, Infosys, and HCL Tech do not match Accenture’s scale, the AI momentum provides a read-through for enterprise demand and digital transformation initiatives.

Analysts project 3–6 per cent growth for tier-1 Indian IT in FY26, with mid-tier firms potentially outperforming at 8–10 per cent due to niche AI expertise. However, sectoral caution remains around US outsourcing policies, tariffs, and hiring slowdowns. Yet, the long-term trajectory is positive as companies embed AI and cloud services, creating sustainable revenue streams.

“Accenture’s results underscore the shift from experimentation to scaling AI responsibly, reinforcing optimism for Indian IT while signalling that near-term growth will remain influenced by macroeconomic and regulatory factors. Strategic adaptation, rather than disruption, is likely to drive the next phase of sector growth,” he said.

On the other hand, Siddharth Maurya, Founder and Managing Director of Vibhavangal Anukulakara Private Ltd, said that while Accenture’s IT service revenues appear stable, its core fundamentals are down, reflecting a broader slowdown in global IT spending.

Macroeconomic factors like high interest rates and cautious corporate budgets are affecting clients in Europe and North America, many of whom are delaying large-scale technology overhauls.

“Indian IT companies have roughly the same clientele as Accenture, and depend heavily on the marketing cloud, digital transformations, and consulting, thus are inclined to their steady growth and performance,” he noted.

Some of these challenges are eased by managed services like cost optimisation, AI, cloud automation, and infrastructure management. GenAI, in particular, is creating new opportunities, while big data, autonomous AI, digital transformation projects, and collaborative platforms continue to support market demand.

Indian IT stocks

However, Accenture’s performance points to potential stagnation for Indian IT stocks, with net sales possibly slowing in the coming quarters.

Overall, macroeconomic headwinds are shaping IT demand, but Indian IT companies are likely to continue investing in AI and transformation initiatives to drive growth.

Published on September 25, 2025