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.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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