Information Technology – Sector Update – Cautious FY26 guidance weighs on sentiment…
Published on 26 Sep 2025
Accenture’s (ACN: NYSE) revenue performance in Q4 came in above consensus estimates and at the top end of guidance band, aided by outsourcing revenues (+6% YoY). The growth was predominantly driven by Fin. Service (+12% YoY CC), third consecutive quarter of double-digit growth. However, the underlying demand beyond the vertical is weak with no visible uptick in discretionary spends. The client investments in GenAI are finding their ways through cost optimization initiatives instead of opportunities around revenue accelerations. The slowdown in net hiring and moderate guidance ensure no incremental recovery in demand on ground. For the Indian counterpart, nothing encouraging in term of outsourcing or bookings perspective, while continued momentum in Fin Service is a positive for the companies having higher concentration mix of BFS.
