Order bookings at Accenture exceeded $20 billion for the third consecutive quarter
Indian IT companies including TCS, Infosys, HCLTech, Wipro, too will benefit from the growing AI demand in North America that Accenture is alluding to, industry analysts said.
Q2 numbers offer near-term comfort, but AI disruption and macro uncertainty still cloud the outlook for Indian IT
Accenture has increased its full-year growth guidance to 3-5% despite macroeconomic uncertainties.
The company expects to add more headcount in the second half of the fiscal year amid growing demand expected from AI-led projects. As of H1, Accenture hired 7,159 employees.
Accenture's revised outlook for full-year revenue growth to be within the range of 3 percent to 5 percent, compared to its earlier projection of 2 percent to 5 percent.
The company expects fiscal third-quarter revenue between $18.35 billion and $19.00 billion, with the midpoint slightly below analysts' average estimate of $18.72 billion
Accenture CEO Julie Sweet compared the current push for AI skills to past technological shifts, like when computers became standard in offices. She said today’s AI training is similar to the typewriter lessons of the past.
The acquisition strengthens Accenture’s network intelligence and AI-led enterprise capabilities.
According to a report by the Financial Times, associate directors and senior managers at Accenture were informed that “regular adoption” of AI tools would be required to progress into leadership positions.
Accenture’s cybersecurity business is worth about $10 billion, with around 30,000 security professionals worldwide. Of these, 13,000 are based in India
For the local industry to perform, new AI-led services must offset the deflationary impact of AI on the existing revenue stream
For Indian IT companies such as TCS, Infosys, HCLTech, and Cognizant, analysts say a stronger recovery is likely to depend on an improvement in macro conditions rather than company-specific execution alone.
The IT consulting firm reported revenue of $18.74 billion, compared with analysts' average estimate of $18.52 billion.
Accenture is already applying Agentic AI in finance workflows for a large Indian retail company, where 5 agents are expected to deliver around 35% cost savings in payment operations.
Oracle said the investment will include training over 8,000 practitioners and developing more than 100 industry-specific AI use cases across sectors such as manufacturing and utilities.
While announcing its Q4 results, consulting firm Accenture Plc said it expects US federal spending cuts on consultants to slow its growth next year.
A re-rating of the sector as a whole looks unlikely till there is a new technology cycle with meaningful earnings visibility
Workforce reductions and acquisition exits come as IT demand softens; TCS also cut staff amid industry-wide caution earlier.
CEO Julie Sweet said every time there’s a big policy change, unfolded over decades, it has usually driven more business for the company.
Since it began separately disclosing Gen AI numbers in FY24, the company has accumulated more than $7 billion in bookings from the nascent technology.
Accenture expects revenue growth of 2-5% in local currency in FY26 and plans to return at least $9.3 billion in cash to shareholders.
India is already Accenture's largest employee base globally, with more than 300,000 of its 790,000 employees based in the country
Accenture is using acquisitions to quickly scale-up in new growth areas
Given the uncertain macro, there could be both winners and losers