Accenture Q2 earnings: What it means for Indian IT? Infosys among JM Financial’s top picks
In the large-cap space, Infosys Ltd emerges as their top pick among the top six T-1 IT players, while Mphasis Ltd is the preferred choice in the mid-tier segment and Sagility Ltd among the listed BPO names.
- Mar 20, 2026,
- Updated Mar 20, 2026 10:19 AM IST
Accenture delivered revenue of 18 billion for the second quarter of FY26, beating estimates. However, brokerage firm JM Financial remains cautious, noting that its earnings are unlikely to improve the sentiment for Indian IT.
The tech behemoth revised its full-year FY26 revenue guidance upwards to 3% to 5%, up from its earlier estimate of 2% to 5%. JM Financial highlighted that Indian IT companies are currently enduring a dual blow from macroeconomic slowdown and GenAI-driven productivity shifts.
“We remain selective and prefer stocks underpinned by reasonable operational visibility,” the brokerage said.
In the large-cap space, Infosys Ltd emerges as their top pick among the top six T-1 IT players, while Mphasis Ltd is the preferred choice in the mid-tier segment and Sagility Ltd among the listed BPO names.
Meanwhile, at 10:07 am today, Infosys shares were trading 2.24% higher at Rs 1248 apiece on BSE.
“Accenture has corrected 38% while TCS/Infosys have corrected 32%/22% in the last 1 year,” JM Financial said.
“Key read throughs for Indian IT – (a) CY26 spending to be similar to CY25 based on clients finalizing their budgets (b) Headcount remained flat QoQ / declined 2% YoY for Accenture (c) TTM managed services bookings growth of +3.8% YoY USD with 1.25x book-to-bill though quarter booking was soft,” the brokerage said.
While service providers are attributing macroeconomic headwinds for growth moderation, enterprises are actively hunting for AI-driven productivity gains from their IT partners, which is increasing the risk of another soft year, it said.
JM Financial projected a modest 4% constant growth for the sector in FY27. Furthermore, it said broader sector re-rating is "unlikely to happen if concerns over the impact of Gen Al continues".
Accenture delivered revenue of 18 billion for the second quarter of FY26, beating estimates. However, brokerage firm JM Financial remains cautious, noting that its earnings are unlikely to improve the sentiment for Indian IT.
The tech behemoth revised its full-year FY26 revenue guidance upwards to 3% to 5%, up from its earlier estimate of 2% to 5%. JM Financial highlighted that Indian IT companies are currently enduring a dual blow from macroeconomic slowdown and GenAI-driven productivity shifts.
“We remain selective and prefer stocks underpinned by reasonable operational visibility,” the brokerage said.
In the large-cap space, Infosys Ltd emerges as their top pick among the top six T-1 IT players, while Mphasis Ltd is the preferred choice in the mid-tier segment and Sagility Ltd among the listed BPO names.
Meanwhile, at 10:07 am today, Infosys shares were trading 2.24% higher at Rs 1248 apiece on BSE.
“Accenture has corrected 38% while TCS/Infosys have corrected 32%/22% in the last 1 year,” JM Financial said.
“Key read throughs for Indian IT – (a) CY26 spending to be similar to CY25 based on clients finalizing their budgets (b) Headcount remained flat QoQ / declined 2% YoY for Accenture (c) TTM managed services bookings growth of +3.8% YoY USD with 1.25x book-to-bill though quarter booking was soft,” the brokerage said.
While service providers are attributing macroeconomic headwinds for growth moderation, enterprises are actively hunting for AI-driven productivity gains from their IT partners, which is increasing the risk of another soft year, it said.
JM Financial projected a modest 4% constant growth for the sector in FY27. Furthermore, it said broader sector re-rating is "unlikely to happen if concerns over the impact of Gen Al continues".