TCS, Infosys, Wipro: IT Stocks In Focus After Accenture Beats Q3 Revenue Estimates
TCS, Infosys, and Wipro shares are in focus after Accenture's revenue beat for Q3, driven by AI services demand.
IT Stocks In Focus: Shares of TCS, Infosys and Wipro will be in focus after Accenture's revenue beat for third-quarter driven by growing demand for the consulting giant's AI-driven services from enterprise customers.
Accenture shares dropped 11% on Friday, reaching a low of $273.19. As a result, the American Depository Receipts (ADRs) of India's leading IT companies, Infosys and Wipro, also declined. Infosys ADRs fell 3% to $17.89, while Wipro ADRs were slightly down by 0.33%.
Accenture reported third-quarter revenue of $17.7 billion, surpassing analysts' average estimate of $17.30 billion, according to LSEG data. This growth was driven by increased spending by clients in the financial services sector.
The profit per share of $3.49 also exceeded estimates of $3.32.
Accenture now anticipates annual revenue growth of 6% to 7%, compared to its previous forecast of 5% to 7%.
To manage the uncertainty, Accenture plans to focus on AI consulting through the establishment of a new business unit called reinvention services. This unit will consolidate its AI offerings and be led by Manish Sharma, the head of its Americas business.
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