On Thursday, the American Depository Receipts (ADRs) of Infosys and Wipro experienced declines of 3.6% and 3.2%, respectively. This downturn followed Accenture’s updated full-year revenue forecast, in which the company increased the lower range of its annual revenue expectations due to rising demand for services that assist clients in integrating AI-powered tools into their operations. A report by Reuters highlighted that companies like Accenture have benefited from robust demand for large-scale projects related to cloud migration, AI-driven digital transformation, and data security. Accenture has secured considerable projects and formed partnerships with banks, telecommunications firms, and sports organizations.
Accenture’s performance serves as a barometer for wider industry trends and offers insights into the future of the domestic IT sector. The domestic earnings season, set to commence in April, will include announcements from Tata Consultancy Services (TCS). Accenture now anticipates an annual revenue growth of 5% to 7%, revising its earlier projection of 4% to 7%. Analysts had expected a growth rate of 5.7%, according to data compiled by LSEG.
ADRs are tradable securities issued by a U.S. bank, representing shares in a foreign company and allowing U.S. investors to trade foreign stocks on U.S. exchanges using U.S. dollars. Despite positive trends in major Wall Street indices, Infosys and Wipro’s ADRs traded negatively. The Dow 30 rose by 203.28 points or 0.48% to 42,167.90, the S&P 500 gained 25.06 points or 0.44% to reach 5,700.35, and the Nasdaq Composite increased by 106.88 points or 0.60% to approximately 17,850.
The Nifty IT index concluded at 36,676.65, gaining 1.25%, making it one of the top-performing indices, trailing slightly behind Nifty Auto. According to a review note by Motilal Oswal Financial Services, technology companies reported about 9% year-on-year growth in their third-quarter fiscal year 2025 earnings. The IT services sector experienced mixed results in the seasonally weak third quarter, with a median revenue growth of 1.8% quarter-on-quarter on a constant currency basis, compared to 2%, 1.2%, and 0.7% in previous quarters.
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