February 10, 2025

Infosys, TCS, Wipro to HCL Tech: IT stocks rise after strong Accenture earnings.

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IT_stocks

Share prices of Infosys, Tata Consultancy Services, HCL Technologies, Wipro and other IT stocks. Accenture Plc stock share price is also to gain investor confidence by recording a strong Q1FY25 result performance. It had ended with 7.03% gains on its share price of Accenture Plc at $372.16. Accenture, the IT giant, reported its first-quarter results on Thursday, December 19, which were above Wall Street revenue projections. Clients’ higher usage of AI-powered solutions led the company to see an increase in demand for its services according to analysts.

Accenture’s first-quarter revenues were at $17.7 billion, above analysts’ projections of $17.12 billion, according to news reports.

Accenture’s 1Q revenue of $17.7b billion rose 8.0% year-over-year in constant currency terms and was ahead of the guided range of 2-6% year-over-year growth in constant currency terms, said analysts at Jefferies India Pvt Ltd. Growth was driven by Consulting, which is up 6% YoY, assisted by a positive base and ramp of large deals, and by Managed Services. Accenture has increased its FY25 revenue growth guidance by 100 bps to 4-7% YoY, which incorporates about 3% from acquisitions. According to analysts, the boost in guidance was mainly on account of reflecting the beat in the first quarter and strong visibility of the second quarter.

Analysts at Jefferies India Pvt Ltd said that despite an unchanged demand environment, strong net hiring with declining utilization suggests improving revenue visibility.

Nuvama Institutional Equities said the guidance upgrade from Accenture is driven by faster execution of deals it won much earlier than its expectation. Improvement in the growth from Outsourcing would be very positive for the Indian IT Services sector. Nuvama continues with a constructive view on the sector; expect a sustainable, strong demand environment along with opportunities from Gen AI to lead healthy three-year earnings growth.

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