Infosys ADRs Plummet Over 8% and Wipro Drops 6% Following Accenture’s Downgrade of Annual Revenue Forecast.
The recent decline in American depositary receipts (ADRs) of Indian IT leaders Infosys and Wipro signals heightened concerns regarding the discretionary technology spending landscape among U.S. enterprises. On Thursday, Infosys ADRs fell by over 8%, while Wipro ADRs were down nearly 6%, primarily following Accenture’s sharp 11% drop after it revised its FY26 revenue growth forecast down to 3%-4% from an earlier projection of 3%-5%. This downward adjustment, coupled with anticipated fourth-quarter revenues lower than Wall Street expectations, suggests a cautious approach from enterprises towards investment in IT consulting and digital transformation initiatives.
The implications of Accenture’s revised guidance are significant for Indian IT companies, as many of them depend heavily on revenue from North American clients and compete directly with Accenture in digital projects. Infosys has been intensifying its focus on artificial intelligence as a strategic response to pricing pressures within traditional IT services. The firm has made substantial investments through platforms like Topaz and Cobalt, alongside partnerships with major players such as OpenAI, Microsoft, and Nvidia. Despite these efforts to bolster AI-led revenue streams, Infosys shares have suffered a 31% decline this year, underscoring market apprehensions regarding a slowdown in enterprise technology spending.
Wipro’s outlook appears even grimmer, with Goldman Sachs predicting that FY27 may mark the fourth consecutive year of revenue decline. The brokerage has revised its revenue and earnings estimates downward, reflecting a generally neutral sentiment for the broader Indian IT sector. While Infosys aims for FY27 revenue growth of 1.5%-3.5% in constant currency, supported by large deal wins and acquisitions, the overall economic conditions are rendering the growth trajectory increasingly uncertain for both firms. Investors should closely monitor the evolving demand dynamics in the IT sector, particularly as enterprises adjust their technology budgets against a backdrop of economic caution.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)