- Accenture shares surged 22% in US trading after strong quarterly results and outlook
- Accenture reported Q4 revenue of $18.68 billion, beating analyst estimates
- Consulting revenue was $9.28 billion, exceeding expectations of $8.86 billion
Accenture shares surged as much as 22% in US trading on Thursday, marking the company's biggest one-day gain, after the global IT services major reported stronger-than-expected quarterly results and offered an upbeat revenue outlook.
The sharp rally in Accenture also lifted Indian IT stocks traded in the US, with Infosys ADRs rising nearly 9% and Wipro ADRs gaining around 10%, according to real-time market data.
At 9:45 a.m. EDT on October 1, Accenture was trading at $225.00, up $41.93, or 22.90%, on the New York Stock Exchange, according to the real-time quote data. Infosys and Wipro ADRs were also sharply higher in early US trading.
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The move followed Accenture's fiscal fourth-quarter results, which showed revenue of $18.68 billion, above analysts' expectations of about $18.03 billion. Consulting revenue came in at $9.28 billion, ahead of the $8.86 billion expected by analysts, while quarterly bookings rose 4% year-on-year to $22.17 billion.
The company also gave investors a more positive outlook for fiscal 2027. Accenture expects annual revenue growth of 3%-6%, above the market consensus of around 3.9%
The earnings update provided a fresh boost to sentiment around the global IT services sector after concerns earlier this year about slower technology spending, macroeconomic uncertainty and the potential impact of artificial intelligence had weighed on Accenture's shares.
Accenture's consulting business, in particular, showed resilience during the quarter. The company said demand for large-scale technology and AI transformation projects remained strong, while its bookings performance pointed to continued spending by clients on technology projects.
The sharp move in Accenture's stock was closely watched by investors in Indian IT companies because of the company's global client exposure and its position as a bellwether for technology-services spending.
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The gains in Infosys and Wipro ADRs therefore came as investors reassessed the outlook for the broader IT services sector following Accenture's results and guidance.
The reaction marks a notable reversal from earlier episodes when Accenture's outlook had weighed on Indian IT stocks. In June, a cut in Accenture's revenue-growth guidance had triggered a sharp selloff across India's IT sector.
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