The stronger-than-expected performance by global consulting giant Accenture in the fiscal fourth quarter boosted the American Depositary Receipts (ADRs) of Infosys and Wipro, as both recovered sharply from their recent losses.
In pre-market trade on Thursday, 1 October, Infosys ADRs jumped 8% to $11.60, while Wipro ADRs rose 10% to $1.82 on the NYSE. The gains came after both IT companies had been reeling under sustained pressure, falling to levels not seen in the past six years amid multiple challenges.
However, Accenture’s strong performance and upbeat outlook for fiscal 2027 offered much-needed relief to investors, with the gains in their US-listed ADRs suggesting that sentiment towards the sector could improve ahead of the domestic earnings season, which will kick off next week.
ADR shares are instruments that allow foreign companies to access the US stock market through certificates issued by US banks, enabling their shares to trade on US exchanges.
Accenture Q4 results: Revenue beats estimates
For the fiscal fourth quarter, the company reported revenue of $18.7 billion, an increase of 6% in US dollars and 7% in local currency. Analysts were expecting revenue of $18.04 billion, according to estimates compiled by Bloomberg.
It posted annual revenue of $74.2 billion, an increase of $4.5 billion, or 6%, in US dollars and 5% in local currency.
Consulting revenue totalled $9.28 billion in the fourth quarter, above analysts’ expectations, while revenue from its communications, media and technology segment jumped 11% to $3.26 billion during the quarter, the Dublin-headquartered firm said in a statement on Thursday.
In terms of bookings, the company reported $22.2 billion, beating the roughly $20 billion analysts had estimated. During the fourth quarter, Accenture announced separate deals with Alphabet Inc.’s Google Cloud, Anthropic PBC and Amazon.com Inc.’s Amazon Web Services unit.
Accenture gives upbeat outlook for fiscal 2027
For fiscal 2027, Accenture expects revenue growth of 3% to 6% in local currency. It forecasts GAAP diluted earnings per share of $14.39 to $14.81, compared with analysts’ average estimate of $14.67.
The forecast suggests Accenture’s consulting business has held up despite macroeconomic uncertainty and the threat of disruption from AI that has battered its stock.
Accenture Chair and CEO Julie Sweet said, “We exceeded our fourth-quarter revenue guidance range and capped off another year of broad-based growth across our business, grew adjusted EPS 8%, returned a record $11.5 billion to shareholders and reached a new high of 141 quarterly client bookings of $100 million or more.”
(With inputs from agencies)
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