International IT companies main Accenture’s newest quarterly efficiency and lowered full-year steerage point out that demand circumstances stay difficult, with little signal of an imminent recovery for the IT companies trade, based on a report by Kotak Institutional Equities.
The brokerage mentioned Accenture’s outcomes supplied “no solace to a sector beleaguered by a number of headwinds” as discretionary spending pressures persist and geopolitical uncertainties proceed to weigh on shopper decision-making.
Accenture reported income of $18.7 billion for the quarter, up 5.6 per cent year-on-year in greenback phrases and three per cent in native forex, with growth touchdown on the midpoint of its steerage vary.
Nonetheless, the corporate diminished its FY2026 income growth steerage to 3-4 per cent from 4-5 per cent earlier. Kotak famous that “the midpoint of the steerage basically implies nil natural growth, excluding the US Federal enterprise.”
In line with the report, the continued battle in West Asia has emerged as an extra headwind for the sector.
Accenture disclosed that the battle had a income impression of $100 million in the course of the quarter, break up between direct results on its West Asia operations and oblique impacts on different areas and verticals.
“The West Asia battle contributes to incremental demand headwinds,” the report mentioned, including that “longer decision-making because of the conflict state of affairs led to gross sales delays in West Asia and the EMEA.”
Kotak highlighted that discretionary spending stays below stress, whereas a number of massive deal alternatives have been pushed into FY2027 on account of client-specific causes.
A key concern flagged by the brokerage was weak point in bookings, notably in managed companies. Accenture’s complete bookings declined 3 per cent in native forex, whereas managed companies bookings fell sharply.
The report famous a “sharp yoy decline in managed companies bookings” and highlighted that “Accenture’s book-to-bill in managed companies declined under 1X in 3QFY26.”
Kotak mentioned the event raises considerations in regards to the availability of sufficiently massive managed companies alternatives in the market.
The brokerage additionally expressed warning over Accenture’s latest acquisition technique and its push into the mid-market section.
Discussing the corporate’s latest cybersecurity acquisitions and launch of Accenture Edge, Kotak mentioned that whereas such strikes could possibly be considered as strategic efforts to seize alternatives arising from AI adoption, in addition they increase questions on confidence in the present market.
“Alternatively, the costly nature of acquisitions and concentrate on midmarket enterprises, not the standard focus space for a big companies agency, additionally raises the query of whether or not these are determined measures taken in an more and more more durable and aggressive IT companies market,” the report said.
On the bogus intelligence entrance, the report acknowledged encouraging developments in enterprise adoption. Kotak mentioned purchasers proceed to take a position in digital core capabilities and are transferring from pilot initiatives to manufacturing deployments.
Nonetheless, the brokerage cautioned that “commentary on greater AI adoption by purchasers is encouraging, however isn’t mirrored in numbers as of now.”
For Indian IT corporations, Kotak believes Accenture’s commentary factors to continued demand uncertainty, further dangers from geopolitical developments and no speedy indicators of a broad-based recovery in discretionary know-how spending.
Revealed on June 22, 2026
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