Shares of Infosys and Wipro rose in US pre-market trading after Accenture reported better-than-expected revenue and an upbeat growth forecast. The positive signal offers relief to the Indian IT sector, which has faced concerns over slowing demand and AI-driven pricing pressure throughout the year.
Infosys and Wipro saw their US-listed American Depositary Receipts (ADRs) climb on Thursday, with Infosys rising about 8% and Wipro gaining 3%. The positive price movement followed strong fiscal fourth-quarter results from global technology giant Accenture, which reported revenue of $18.68 billion, exceeding the market expectation of $18.03 billion.
Accenture’s annual revenue growth guidance of 3% to 6% was a key highlight for investors, as it came in higher than the 3.9% growth forecast anticipated by analysts. In the technology services industry, Accenture acts as a major bellwether. When a company of this scale provides a strong outlook, it often signals potential stability for the global IT outsourcing market, where many Indian exporters generate a significant portion of their revenue.
This market reaction provides a temporary lift for Indian IT firms that have struggled through a difficult 2026. Throughout the year, the sector has contended with a combination of cautious client spending and pricing pressure resulting from the rapid integration of artificial intelligence into IT services. Many Indian companies have faced an environment where clients prioritize immediate cost-optimization efforts over launching new, large-scale digital transformation projects.
Despite the enthusiasm in the markets, industry analysts remain cautious about the performance outlook for the upcoming July-September quarter. Potential headwinds such as pricing adjustments and delays in discretionary project spending remain. Major brokerage firms have previously suggested that the current period could be one of the most challenging for Indian IT companies in the last three years.
The final benefit for Indian investors will depend on whether this positive global sentiment translates into actual order wins and revenue growth for domestic providers. Investors should monitor the upcoming earnings season and management commentary, as these updates will provide clarity on whether the demand environment is truly recovering or if the current optimism is a short-term reaction.