- Infosys ADR rose 8.2% and Wipro ADR gained 3.17% after Accenture's earnings beat
- Accenture's Q4 revenue was $18.7 billion, exceeding estimates by $660 million
- Accenture forecast 3% to 6% revenue growth for fiscal 2027 and raised EPS guidance
Infosys and Wipro American Depository Receipts (ADRs) rose around 8% before the opening bell on Thursday, October 1 following Accenture's strong quarterly earnings that boosted overall outlook for the IT sector.
Infosys ADR climbed 8.2% to $11.65, while Wipro ADR gained 3.17% to $1.7 by 5 pm IST.
The latest rally comes after Accenture's fourth-quarter revenue stood above market expectations and forecast 3% to 6% revenue growth for fiscal year 2027, indicating a strong demand for its consulting and technology services amid geopoltical uncertainties.
The IT firm posted revenue of $18.7 billion for the fourth quarter, up 6% in US dollars and 7% in local currency. The revenue was above the estimated $18.04 billion. For the full fiscal year, Accenture's revenue stood at $74.2 billion, an increase of $4.5 billion, or 6% in US dollars and 5% in local currency.
ALSO READ: Accenture Shares Spike 20% Pre-Market On Q4 Earnings Beat, Upbeat Forecast
Accenture's fourth-quarter bookings stood at $22.2 billion, up 4% in US dollars and 5% in local currency, while full-year bookings was at $84.5 billion.
Meanwhile, the IT company's fourth-quarter GAAP operating margin came at 15.3%, an increase of 370 basis points. The margin was also 20 basis points more than the adjusted operating margin from the year-ago quarter. GAAP operating margin stood at 15.4%, up 70 basis points and adjusted operating margin rose 20 basis points to 15.8% for the full year.
Fourth-quarter GAAP diluted earnings per share stood at $3.29, up 46% year-on-year and 9% above adjusted EPS in the fourth quarter of fiscal 2025.
For the full fiscal year, GAAP diluted EPS rose 12% to $13.56, while adjusted EPS increased 8% to $13.97.
The company generated free cash flow of $2.8 billion in the fourth quarter and $11.6 billion for the full year. It returned $11.5 billion to shareholders during fiscal 2026, a jump of 38% from last year, including $7.5 billion in share repurchases or redemptions, with Accenture completing an additional $2 billion in share repurchases during the fourth quarter.
FY27 Outlook
Accenture forecats revenue to increase 3% to 6% in local currency for fiscal 2027. The company expects GAAP diluted EPS to be between $14.39 and $14.81, indicating growth of 6% to 9%. The company expects this to translate into a 3% to 6% increase over adjusted EPS. Accenture also expects to return at least $9.5 billion in cash to shareholders during fiscal 2027.
ALSO READ: Accenture Shares Spike 20% Pre-Market On Q4 Earnings Beat, Upbeat Forecast
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