Accenture Plc reported an 8% increase in revenue to $18 billion, surpassing the Bloomberg consensus estimate of $17.86 billion, according to its earnings statement released on Thursday. The Dublin-based firm also recorded its highest-ever second-quarter bookings, which rose 6% to $22.1 billion. Diluted earnings per share for the quarter grew 4% to $2.93.
The company said it now expects full-year revenue growth of 4% to 6% in local currency, compared with its earlier guidance of 3% to 5%, excluding an estimated 1% impact from its US federal business.
For the full year, GAAP diluted earnings per share are projected to be in the range of $13.25 to $13.50, reflecting growth of 9% to 11%. Adjusted earnings are expected to increase 6% to 8%, coming in between $13.65 and $13.90.
Accenture has also raised its free cash flow outlook for the year and now expects it to be in the range of $10.8 billion to $11.5 billion.
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What are analysts saying?
For Indian IT, international brokerage firm Nomura suggests that growth momentum in the financial services segment remains strong, with no meaningful change in the macroeconomic environment. Clients are also moving beyond proof-of-concept stages to live AI deployments, which is expected to drive demand for core services such as cloud, data and platform modernisation. This trend is likely to support near-term growth in the financial services vertical for Indian IT companies, with AI-led projects expected to scale up further.
That said, a sharp recovery in overall growth will depend on improvements in the macro environment, particularly in the US. Among stocks, Infosys Ltd and Cognizant are preferred in the largecap space, while Coforge and eClerx are favoured among midcap and smallcap names.
Nuvama said the guidance upgrade, despite a weak environment affected by Gen AI and the Gulf war, is a modest positive for Indian IT. It added that the sector remains attractive as Gen AI is expected to create significant growth opportunities. Following the recent sharp correction, valuations across the sector have also turned appealing.
Motilal Oswal says the ongoing escalation in the war adds a fresh layer of uncertainty that may not yet be reflected in the company’s outlook. While Accenture highlighted an uptick in foundational AI-related work, this does not appear sufficient at present to drive the demand acceleration that was earlier expected.
On AI-driven deflation, earlier analysis has pointed out that software engineering remains at the centre of AI disruption, with a significant share of API usage linked to this segment. At the same time, deploying AI across large and complex enterprises is proving challenging. For IT services firms, the environment continues to be demanding, with companies likely to face successive challenges amid an uncertain macroeconomic and geopolitical backdrop in the near term.
HSBC noted that Accenture’s second-quarter results offer limited support for a revival in sentiment, as bookings growth continues to slow. It said the demand environment in 2026 remains similar to 2025, although AI is acting as a net tailwind and Accenture is gaining market share, according to management.
The brokerage also highlighted that a recent 4% to 5% currency depreciation provides some support to earnings for IT companies, and added that valuations in the sector are now close to their trough levels.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)