India IT Services: Negative read-across from Accenture’s results

Research evidence excerpt

India IT Services: Negative read-across from Accenture’s results

Equity Research

18 June 2026 | 10:50PM IST

Accenture’s (ACN; covered by Jim Schneider) 3Q results (May ‘26) suggest weak Manish Adukia, CFA

+91(22)6616-9049 |

near-term outlook, with the company calling out impact to revenues in the EMEA manish.adukia@gs.com

Goldman Sachs India SPL

region from the Middle East conflict as well as longer decision-making cycles;

Sumangala Lnu

additionally, ACN has seen a few large managed services projects getting deferred to +91(22)6616-9045 |

next fiscal year. Accenture has lowered the top end of its full year FY26 guidance by sumangala.lnu@gs.comGoldman Sachs India SPL

100 bps to 2.5% to 3.5% organic revenue growth (excl. federal services impact), with Raghav Vashishth

the mid-point of 4Q (quarter ending Aug ‘26) guidance suggesting limited change to +91(22)6616-9743raghav.vashishth@gs.com|

growth outlook vs that in May ‘26. We note that our IT Services coverage estimates Goldman Sachs India SPL

assume about 300 bps acceleration in YoY revenue growth in FY27 vs FY26 (or 130

bps excl. TCS), where we may see some downside risk if the demand environment

were to remain unchanged. Separately, Accenture believes AI deployment by

enterprises will be a tailwind for the industry and not a headwind.

We see a negative read-across for our India IT Services coverage from ACN’s results,

given continued low visibility on demand outlook; our recent conversations with

industry participants as well as our global IT spending survey support this view. We

note that our India IT Services coverage is currently trading at a c.55% premium to

global IT stocks (vs 20-25% premium in the past), while growth outlook (at

low-single-digit revenue growth) is not materially different vs global IT.