Accenture's FY26 outlook may weigh on Indian IT

Analysts expect the sector to witness a turnaround in the long term

- NIKITA VASHISHT

Accenture's cautious management commentary during its result for the June-August quarter has left Dalal Street analysts concerned about Indian information technology (IT) stocks in the near term.

On September 25, the global consultancy firm, which houses a significant portion of the Indian IT workforce, guided for revenue growth of 2-5 per cent for FY26, with 1-1.5 per cent headwind from the US Federal business and 1.5 per cent inorganic contribution.

Accenture follows the September-August financial year. For Q1FY26, the management projected 1-5 per cent year-on-year (Yo-Y) revenue growth in constant currency (CC) terms. It expects FY26 adjusted operating margin to come at 15.7-15.9 per cent.

According to analysts at Emkay Global Financial Services, Accenture's FY26 guidance does not assume any improvement in discretionary spends at the upper end. "In fact, it assumes further deterioration at the lower end," it said.