TCS, Infosys to HCL Tech: IT stocks fall after Accenture results, escalation in Israel-Iran war
IT stocks: Shares of IT companies like Tata Consultancy Services (TCS), Infosys, HCL Tech and Wipro fell as much as 3 per cent on Monday following Accenture's financial results.
Infosys fell over 2.43 per cent, becoming the biggest laggard on Nifty IT index. Meanwhile, TCS, Wipro and HCL Tech slipped below 2 per cent on June 23.
On the other hand, Accenture share price dropped over 7 per cent on NYSE, hitting intraday low of $273.19 apiece, falling over 11 per cent on Friday, June 20. The IT stock has descended over 21 per cent in past six months. In terms of year-to-date (YTD), the share has slipped over 18 per cent.
Accenture posted an 8 per cent year-on-year revenue increase, reaching $17.7 billion for the March–May 2025 quarter, surpassing Wall Street expectations of $17.30 billion.
The growth was fueled by rising demand for the company's AI-powered services among enterprise clients. The company noted that its quarterly results included a favorable foreign exchange impact of around 0.5 per cent.
Accenture posted earnings per share of $3.49, surpassing the projected $3.32. The company reported a gross margin of 32.9 per cent for the quarter, slightly down from 33.4 per cent in the same period last year.
The Ireland-based firm revised the lower end of its full-year local currency revenue growth forecast to 6-7 per cent, up from the previous 5-7 per cent range. For the fourth quarter of FY25, it anticipates revenues between $17 billion and $17.6 billion.
At the end of Q3, Accenture held a total cash balance of $9.6 billion.
The IT major posted a decline in quarterly new bookings for the second consecutive time, which outweighed its revenue outperformance and raised annual guidance, leading to a drop of over 6% in its stock.
Bookings — referring to future revenue from secured contracts — dropped by 6 per cent to $19.70 billion in the third quarter, a steeper fall compared to the 3 per cent decrease seen in the previous quarter.
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