Infosys, Wipro ADRs Rise After Accenture Q1 Results, Unchanged Guidance
The ADRs of Infosys and Wipro jumped as much as 1.8% during early trading in New York.
New York-listed shares of leading Indian information technology giants Infosys Ltd. and Wipro Ltd. rose over 1% on Thursday after Accenture Plc declared its first-quarter results and retained the full-year revenue guidance to a range of 2-5%.
The American Depository Receipt (ADR) is a tool for multinationals/foreign companies (primarily based outside the US) or organisations to trade on US stock markets, just like regular shares of US companies.
In theory, an ADR is similar to a special certificate issued by a US bank. It is a negotiable certificate representing shares in a foreign company traded on US stock exchanges.
The ADRs of Infosys and Wipro jumped as much as 1.8% during early trading. The tech-heavy Nasdaq Composite also surged 1.8% to above 23,000.
Accenture's sales from Americas market rose 4%, while EMEA grew 8%. For Indian IT companies, the United States (part of North America geography), is the most important source of demand.
Restrictive immigration policies of the Trump administration and worries over discretionary corporate spending in the US have weighed on sentiment for the IT pack.
Earlier in the day, the Nifty IT index ended 1.2% higher ahead of the Accenture results. Infosys share price settled 1.5% higher at Rs 1,602, while Wipro climbed 1% to close at Rs 261.2 apiece on the NSE.
The benchmark Nifty 50 was flat.
Accenture Q1 Results
Accenture reported a nearly 6% year-on-year growth in revenue in the first quarter of the financial year 2026, driven by robust demand for its artificial intelligence-driven IT services, and retained its sale forecast for the year. The bottomline rose to $18.7 billion, compared to Bloomberg consensus estimate of $18.52.
The Dublin-based company company's adjusted earnings per share, a measure of profitability, of $3.94 beat estimate of $3.72.
Total bookings reached $20.9 billion, up 12% year-over-year and above the $19.33 billion estimate. Consulting new bookings surged 7.4% and managed services new bookings grew 16%, both exceeding expectations.
Accenture expects second-quarter revenue to range between $17.35 billion and $18.0 billion, compared to the market estimate of $17.76 billion, representing growth of 1% to 5%.
For the full year 2026, the company maintains its forecast of 2% to 5% revenue growth and continues to project adjusted EPS between $13.52 and $13.90, in line with the estimate of $13.79.
