Accenture's Strong Q4 Results Boost Infosys and Wipro ADRs in Pre-Market Trade

The gains came after both Indian IT services firms had been under sustained pressure, with their ADRs trading at levels not seen in the past six years due to multiple sectoral challenges. Accenture's strong performance and optimistic outlook for fiscal 2027 provided relief to investors, signalling potential improvement in sentiment ahead of the domestic earnings season.

Accenture reported fiscal fourth-quarter revenue of $18.7 billion, representing a 6% increase in US dollars and 7% in local currency, surpassing the Bloomberg consensus estimate of $18.04 billion. The company's annual revenue for the fiscal year reached $74.2 billion, up $4.5 billion or 6% in US dollar terms.

Consulting revenue totalled $9.28 billion in the quarter, exceeding expectations, while revenue from its communications, media and technology segment rose 11% to $3.26 billion. Bookings came in at $22.2 billion, beating the approximately $20 billion forecast by analysts.

For fiscal 2027, Accenture projects revenue growth of 3% to 6% in local currency and GAAP diluted earnings per share between $14.39 and $14.81, compared to the average analyst estimate of $14.67. The company highlighted new deals with Google Cloud, Anthropic and Amazon Web Services during the quarter.

ADRs enable foreign companies like Infosys and Wipro to have their shares traded on US exchanges through certificates issued by American banks. The positive reaction in their ADRs reflects investor response to Accenture's results as a bellwether for the global IT services sector.