Infosys, Wipro, TCS, HCL Tech: Key takeaways from Accenture’s Q4 for Indian IT giants
Accenture has outsourcing as a large part of its revenue, where it is up directly in competition with TCS, Cognizant Technology Solutions, Infosys, Wipro, HCL Technologies and Tech Mahindra.
- Sep 26, 2025,
- Updated Sep 26, 2025 8:46 AM IST
Accenture's Q4FY25 and FY25 revenue and order book was strong but its margin was impacted by business optimisation costs. The $65-billion behemoth in the consulting and IT services has outsourcing as a large part of its revenue at 48 per cent on trailing twelve month basis, where it is up directly in competition with India-centric IT players like TCS, Cognizant Technology Solutions, Infosys, Wipro, HCL Technologies and Tech Mahindra.
Nuvama Institutional Equities said Accenture delivered revenue growth at the top end of its guidance despite elevated macro uncertainty. The FY26 revenue growth outlook of 3–6 per cent, excluding US Federal business and forex impact, was also decent. IT underscores continued enterprise investment in strategic priorities and cost-optimisation initiatives, the brokerage said.
"We view the results as overall neutral for Indian IT. We expect the sector to remain volatile in the near term, impacted by weak and uncertain macro. Over medium to long term, we remain positive, anticipating a recovery in macro environment would accelerate enterprise tech spending," Nuvama said.
Nirmal Bang said Accenture’s Q4FY25 earnings reaffirmed a gradual demand recovery, led by cost take-outs, cloud transformation, and Gen AI. Indian IT services should focus on scaling up AI capabilities, securing large deals, and improving operational efficiencies to mitigate margin pressures in a competitive market environment, the brokerage said.
"Accenture’s growth in AI and cloud reinforces the view that Indian IT firms will need to accelerate their AI-driven transformation offerings to remain competitive. With cost optimization driving demand, expect Indian IT firms to push managed services deals and cost take-out projects especially in this volatile period for technology companies globally," it said.
Choice Broking, however, sees a subdued demand environment, with weakness in consulting and flat managed services bookings pointing to limited near-term revenue acceleration.
While resilience in financial services is a positive, ongoing softness in communications and retail weighs on overall sentiment, it said.
"Enterprises remain focused on cost optimization, automation, and vendor consolidation, driving efficiency-led deals over discretionary transformation projects. As a result, earnings for FY26E are expected to remain soft with stable margins, and meaningful acceleration is unlikely until there is greater macro clarity and a revival in discretionary spending. Potential Fed rate cuts may ease macro pressures, improving H2FY26 performance through better TCV conversion," it said.
Accenture works with 80 per cent of global 500 corporations and has 75 per cent of its 7,80,000 workforce based in low-cost locations like India and Philippines), with possibly 3,25,000 in India.
It reported a 7 per cent YoY (up 4.5 per cent CC YoY) jump in revenue at $17.6 billion, exceeding Street’s estimate of $17.4 billion. Consulting revenue rose 3 per cent CC YoY while Managed Services (Outsourcing) turned in 6 per cent CC YoY growth. Overall bookings were up 8.1 per cent QoQ and 6 per cent YoY, with Consulting increasing 3.1 per cent YoY and Outsourcing rising 7.2 per cent YoY.
Accenture's Q4FY25 and FY25 revenue and order book was strong but its margin was impacted by business optimisation costs. The $65-billion behemoth in the consulting and IT services has outsourcing as a large part of its revenue at 48 per cent on trailing twelve month basis, where it is up directly in competition with India-centric IT players like TCS, Cognizant Technology Solutions, Infosys, Wipro, HCL Technologies and Tech Mahindra.
Nuvama Institutional Equities said Accenture delivered revenue growth at the top end of its guidance despite elevated macro uncertainty. The FY26 revenue growth outlook of 3–6 per cent, excluding US Federal business and forex impact, was also decent. IT underscores continued enterprise investment in strategic priorities and cost-optimisation initiatives, the brokerage said.
"We view the results as overall neutral for Indian IT. We expect the sector to remain volatile in the near term, impacted by weak and uncertain macro. Over medium to long term, we remain positive, anticipating a recovery in macro environment would accelerate enterprise tech spending," Nuvama said.
Nirmal Bang said Accenture’s Q4FY25 earnings reaffirmed a gradual demand recovery, led by cost take-outs, cloud transformation, and Gen AI. Indian IT services should focus on scaling up AI capabilities, securing large deals, and improving operational efficiencies to mitigate margin pressures in a competitive market environment, the brokerage said.
"Accenture’s growth in AI and cloud reinforces the view that Indian IT firms will need to accelerate their AI-driven transformation offerings to remain competitive. With cost optimization driving demand, expect Indian IT firms to push managed services deals and cost take-out projects especially in this volatile period for technology companies globally," it said.
Choice Broking, however, sees a subdued demand environment, with weakness in consulting and flat managed services bookings pointing to limited near-term revenue acceleration.
While resilience in financial services is a positive, ongoing softness in communications and retail weighs on overall sentiment, it said.
"Enterprises remain focused on cost optimization, automation, and vendor consolidation, driving efficiency-led deals over discretionary transformation projects. As a result, earnings for FY26E are expected to remain soft with stable margins, and meaningful acceleration is unlikely until there is greater macro clarity and a revival in discretionary spending. Potential Fed rate cuts may ease macro pressures, improving H2FY26 performance through better TCV conversion," it said.
Accenture works with 80 per cent of global 500 corporations and has 75 per cent of its 7,80,000 workforce based in low-cost locations like India and Philippines), with possibly 3,25,000 in India.
It reported a 7 per cent YoY (up 4.5 per cent CC YoY) jump in revenue at $17.6 billion, exceeding Street’s estimate of $17.4 billion. Consulting revenue rose 3 per cent CC YoY while Managed Services (Outsourcing) turned in 6 per cent CC YoY growth. Overall bookings were up 8.1 per cent QoQ and 6 per cent YoY, with Consulting increasing 3.1 per cent YoY and Outsourcing rising 7.2 per cent YoY.