Accenture plcAccenture flagged weak quarterly sales and lowered annual revenue outlook due to weakness in Middle East business and clients delaying non-essential tech spends.

India's Nifty IT index slumped 5.6% on Friday after industry bellwether Accenture forecast quarterly sales below Wall Street view and lowered the upper end of its annual revenue outlook due to weakness in its Middle East business. Shares of Indian IT companies, including Tata Consultancy Services, Infosys, and HCL Tech, fell between 5% and 8%. Analysts expect a negative read-through for India's IT companies, with Morgan Stanley saying that investors projected a weaker-than-usual start to the 2027 fiscal year but remained optimistic about an improvement in the second quarter, though the Accenture commentary could cause those hopes to fade. Goldman Sachs analysts projected a negative read-across given continued low visibility on demand outlook, while broader macroeconomic headwinds are also impacting business visibility as clients hold off on non-essential tech spends.
Accenture plcAccenture flagged weak quarterly sales and lowered annual revenue outlook due to weakness in Middle East business and clients delaying non-essential tech spends.
Infosys Ltd ADRAccenture's weak outlook and commentary on low demand visibility negatively read through to Indian IT firms like HCLTech.
Accenture's weak outlook and commentary on low demand visibility negatively read through to Indian IT firms like TCS.