IT Stocks Today: Nifty IT Sinks 6% As Accenture Guidance Cut Triggers Sell-Off In Infosys, TCS, HCL Tech

Indian IT stocks witnessed heavy selling on June 19 after global consulting and technology services firm Accenture lowered its full-year revenue growth forecast, reviving worries about the pace of recovery in enterprise technology spending.

The Nifty IT index crashed nearly 6 per cent in early trade, making it the worst-performing sectoral index on the D-Street. The weakness spilled over to the broader market, with the Sensex falling more than 700 points and the Nifty slipping below the 24,000 mark.

Infosys, TCS Emerge Biggest Loser

Infosys share price fell more than 8 per cent, emerging as the biggest drag on the Nifty 50. Tata Consultancy Services (TCS) decliuned over 6 per cent, while Tech Mahindra fell around 5 per cent. HCLTech lost more than 5 per cent and Wipro traded lower by nearly 4 per cent.

Selling pressure extended beyond frontline names. Mphasis, Persistent Systems, Coforge, KPIT Technologies, Tata Elxsi, LTIMindtree and L&T Technology Services also recorded steep declines as investors reassessed growth expectations for the Indian IT sector.

The weakness mirrored the overnight rout in global technology services stocks. Accenture shares tumbled nearly 18 per cent in US trading after the earnings release. Indian technology companies listed in the US also came under pressure, with Infosys ADRs sliding close to 10 per cent and Wipro ADRs ending lower.

Accenture Earnings Guidance FY26

The selloff was triggered by Accenture's latest quarterly earnings report, in which the company trimmed its fiscal 2026 revenue growth forecast. It now expects revenue to grow 3 per cent to 4 per cent in local currency, compared with its earlier projection of 4 per cent to 7 per cent. Excluding the impact of its US federal business, Accenture expects revenue growth of 4 per cent to 5 per cent.

The IT company now projects full-year Generally Accepted Accounting Principles (GAAP) diluted earnings per share of $13.38 to $13.50, representing growth of 10 per cent to 11 per cent. Adjusted earnings per share are expected to be between $13.78 and $13.90, up 7 per cent to 8 per cent from the previous year.

Accenture maintained its free cash flow guidance of $10.8 billion to $11.5 billion for the fiscal year.

Accenture Results Q3 FY26

Accenture reported a mixed set of numbers for the third quarter of fiscal 2026. Revenue rose 6 per cent year-on-year to $18.72 billion, slightly above the midpoint of its guided range, while diluted earnings per share increased 9 per cent to $3.80.

The company booked $19.32 billion worth of new orders during the quarter, down 2 per cent from a year earlier. Consulting bookings stood at $10.26 billion, while managed services bookings came in at $9.06 billion.

Operating margin expanded by 20 basis points to 17 per cent, helping operating income rise 6 per cent to $3.18 billion. Net profit increased to $2.39 billion from $2.24 billion a year ago.

Accenture generated free cash flow of $3.6 billion during the quarter and returned $2.2 billion to shareholders through share buybacks and dividends. The company repurchased or redeemed 6 million shares for $1.2 billion and paid dividends worth $1 billion. Its quarterly dividend of $1.63 per share was 10 per cent higher than a year ago.

Julie Sweet, Accenture's Chair and CEO, said, "Demand for large-scale reinvention remains strong — 104 quarterly client bookings of $100 million or more year-to-date, up 13 per cent — and we are seeing more large-scale AI transformation programs, while executing our strategy to capture new areas of growth. Our agreement to acquire a majority stake in Dragos and all of runZero and NetRise, leaders in OT Security, is the type of move that defines our strategy: it is expanding our addressable market, creating a new platform led growth opportunity, and is positioning Accenture at the center of one of the most critical cybersecurity challenges our clients face.”

Why Accenture's Guidance Matters

Accenture's results are closely tracked by investors in Indian IT stocks because the company serves many of the same global clients as Infosys, TCS, HCLTech, Wipro and Tech Mahindra. Its commentary often offers an early view of enterprise technology budgets, outsourcing demand and discretionary spending trends across North America and Europe, the largest markets for Indian software exporters.

What Should Investors Do

According to Nishchal Jain, Quant Researcher at Share.Market by PhonePe, the sharp sell-off reflects concerns over slowing discretionary technology spending by global enterprises. Companies are prioritising cost-saving and managed services projects over higher-margin consulting work, weighing on growth expectations across the sector.

Jain also pointed to what he described as an "AI disruption paradox". While demand for generative AI projects remains strong, the pace of monetisation is slower than expected. At the same time, investors are assessing whether AI-led efficiencies could eventually put pressure on the traditional headcount-driven business model followed by many IT services firms.

For investors, Jain advises caution in the near term and suggests avoiding aggressive buying until signs of stability emerge. For those with a longer investment horizon, he believes the correction could offer an opportunity to gradually accumulate quality large-cap IT stocks over the next three to six months.