Accenture’s Q2 results and improved guidance have lifted sentiment around Indian IT companies, pointing to stable earnings growth despite uneven global demand.
The company reported 8% year-on-year revenue growth in dollar terms to $18 billion and raised its full-year growth guidance to 3–5%. Excluding a drag from its US federal business, growth is seen at 4–6%. Strong deal bookings of $22.1 billion also signalled steady demand.
Brokerages said that while this does not signal a sharp recovery, it does reduce fears of further slowdown amid escalating war in the Middle East.
Nomura said the updated guidance “confirms that growth is not worsening further,” adding that demand in financial services remains steady. However, it cautioned that a broader recovery still depends on macroeconomic improvement.
Citi also remained cautious. It said the guidance does not include “any significant economic disruption,” even as bookings rose 4% year-on-year. The brokerage added that valuations for Indian IT remain high at about 16 times FY27 earnings.
Other analysts see small positives building up. Nuvama called the results a “minor incremental positive,” saying they show resilience in demand and could support higher investments and hiring as AI-led work increases.
Meanwhile, HSBC said the results offer “limited support to revive sentiments,” but noted that artificial intelligence is a net tailwind and is helping Accenture gain market share.
Industry experts said the nature of demand is changing rather than improving sharply.
A domestic analyst at a broking firm said: “The current trend points to a stabilising market rather than the start of a strong recovery. Growth is being supported mainly by smaller, AI-led and cost-focused deals, while large discretionary spending remains weak. Decision-making cycles are still long, and visibility on big-ticket programmes continues to be limited.”
Accenture’s management also indicated that spending patterns are steady, not expanding.
“We saw again this quarter clients continuing to prioritise their most strategic and large-scale transformational programs,” CEO Julie Sweet said. She added that spending for 2026 is “similar to 2025.”
Motilal Oswal echoed this view, calling the read-through for Indian IT “neutral,” as client budgets are expected to stay unchanged next year.
Even so, some factors support earnings. HSBC said a recent 4–5% depreciation in the currency could help Indian IT companies. Analysts also pointed out that spending on AI, cloud, and data is becoming essential, not optional.
Overall, Accenture’s performance suggests that demand is holding up. For Indian IT firms, this means steady earnings visibility, with gradual support from AI-led deals rather than a broad recovery in spending.