Indian IT ADRs Slide After Accenture Slashes Annual Revenue Forecast

American Depository Receipts (ADRs) of Indian IT majors Infosys and Wipro fell sharply on June 18 after Accenture, a key global peer, lowered its annual revenue growth forecast, signaling ongoing caution in enterprise technology spending. Infosys ADRs dropped as much as 8% during the trading session, while Wipro ADRs slid around 6%, tracking an 11% decline in Accenture's own shares.

Accenture reported third-quarter revenue that rose 6% year-over-year but slightly missed analyst expectations. The company revised its full-year revenue growth guidance to 3%-4%, down from its earlier forecast of 3%-5%. It also projected fourth-quarter revenue between $17.75 billion and $18.4 billion, below Wall Street estimates of $18.47 billion, according to LSEG data. The weaker outlook overshadowed Accenture’s announcement of $4.18 billion in cybersecurity acquisitions, including deals for Dragos, runZero, and NetRise.

The read-across is significant for Indian IT companies, which derive a substantial portion of revenue from North American clients and compete with Accenture in large digital transformation projects. The revised guidance suggests that enterprises remain cautious on discretionary IT consulting and transformation spending despite sustained investments in artificial intelligence and cybersecurity.

Infosys has been betting heavily on AI to offset pricing pressure in traditional IT services, expanding investments across AI engineering, data, and cloud through platforms such as Topaz and Cobalt, along with partnerships with OpenAI, Microsoft, and Nvidia. For FY27, Infosys has guided for 1.5%-3.5% constant currency revenue growth. Despite these efforts, Infosys shares have declined about 31% year-to-date, reflecting investor concerns over slowing enterprise technology spending.

Wipro, meanwhile, continues to face a tougher growth outlook. Goldman Sachs recently noted that FY27 could mark the fourth consecutive year of revenue decline for the company and cut its revenue and earnings estimates. Brokerage commentary on Wipro had a broadly neutral read-through for the wider Indian IT sector.

Accenture CEO Julie Sweet said demand for large-scale reinvention remains strong, with 104 quarterly client bookings of $100 million or more year-to-date, up 13%. The company also reported a 9% increase in earnings per share and $8.2 billion returned to shareholders year-to-date.