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Accenture’s Q4 performance signals a potential recovery for Indian IT companies in FY25 and FY26.
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Accenture’s revenue growth forecast for FY25 is 3-6%, with bullishness on generative AI (Gen AI) opportunities.
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Indian IT giants like TCS, Infosys, HCLTech, and Wipro may see improved growth in FY26, driven by Gen AI adoption.
Accenture’s Q4 earnings have sparked optimism for Indian IT companies, indicating a potential recovery in the second half of FY25 and FY26. Accenture’s revenue growth guidance for FY25 and hiring plans suggest a positive outlook for the IT sector.
Accenture’s FY24 revenue growth was 1%, with a forecast of 3-6% for FY25. While slightly lower than Wall Street estimates, this growth is expected to be driven by generative AI (Gen AI) opportunities. Accenture’s Gen AI order inflows reached $3 billion in FY24, with $900 million in revenue.
Indian IT companies like TCS, Infosys, HCLTech, and Wipro are expected to benefit from Accenture’s positive trends. Analysts predict a sharp pickup in growth for Indian players in FY26, driven by Gen AI adoption. Accenture’s hiring plans, adding 24,103 employees in Q4, also indicate a recovery in the IT sector.
However, some experts caution that Indian IT companies may not replicate Accenture’s growth, given differences in their business models. Nevertheless, Accenture’s performance suggests a promising outlook for the Indian IT industry, with Gen AI driving demand and hiring plans indicating a return to growth.
