Accenture Q3 results today; What TCS, Infosys, Wipro stock investors should know, target prices

Accenture is scheduled to release its third-quarter results today, with analysts expecting crucial insights into client decision-making and discretionary spending. Bloomberg’s consensus forecasts a 5.5 per cent constant currency (CC) growth, against Accenture’s guidance of 3 per cent to 7 per cent CC growth for Q3 FY25. 

This is anticipated to translate to a sequential growth of approximately 3 per cent in CC terms, with broad-based growth led by BFSI, Products, and Healthcare sectors. This growth is particularly significant in light of ongoing economic uncertainties. Stock investors of Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies and Tech Mahindra  would be keenly following the  Accenture’s commentary. 

“Accenture’s commentary should largely be around cost takeout and deal consolidation, while discretionary demand visibility will continue to be lower. Indian IT will also continue facing headwinds resulting in a softer start to FY26 with the environment likely to improve in 2HFY26E,” Antique Stock Broking said.

The brokerage said Nifty IT underperformed the Nifty by 15 per cent YTD as companies reported muted FY26 guidance due to ongoing slowdown of discretionary demand. Antique Stock Broking believe the stocks will continue to remain range bound in the near term and a meaningful move from here is contingent on demand picking up largely in 2HFY26. 

Within its coverage universe, HCL Technologies Ltd, Coforge Ltd and Mphasis Ltd are Antique Stock Broking’s top picks. Here are Antique Stock Broking’s target prices for TCS, Infosys and HCL Tech and nine other IT stocks. 

Antique Stock Broking said the bookings are predicted decline for the second consecutive quarter (consensus) by 4.9 per cent year-on-year (YoY), primarily due to a 10.5 per cent YoY drop in Consulting bookings, while Managed Services bookings are expected to grow by 2.4 per cent YoY. Despite an elevated level of global uncertainties affecting discretionary spending, the consensus suggests that Accenture’s FY25 guidance will remain unchanged at 5 per cent–7 per cent in local currency terms.

Accenture’s growth is expected to rely heavily on inorganic growth, as consulting remains under pressure. The company is anticipated to report a revenue of $17.3 billion in Q3 FY25, up 5.5 per cent YoY in CC terms, with inorganic contributions around 3 per cent. The operating margin is expected to improve by 25 basis points YoY to 16.7 per cent, driven by continued cost optimisation initiatives. Such strategies are vital for maintaining competitive advantage.

The decline in bookings, especially in Consulting, raises concerns about Accenture’s revenue visibility and growth momentum for FY26. This muted demand environment could impact the company’s ability to deliver growth in the coming year, notwithstanding its strong position in digital and AI-driven services.

Antique said Accenture’s commentary is expected to focus on cost reduction and deal consolidation, with low visibility in discretionary demand. Indian IT companies, such as TCS, Infosys, and Wipro, are also facing headwinds, with a soft start expected for FY26. Analysts predict that the environment may improve in the second half of FY26.

Within the Indian IT sector, firms like HCL Technologies, Coforge, and Mphasis are highlighted as Antique’s top picks by analysts, given their current market positions and potential for growth amid industry challenges. These companies are strategically poised to capitalize on any market recovery.

Accenture’s results will not only illuminate global demand trends but also provide a benchmark for Indian IT firms, offering clues on how these companies might navigate the current economic landscape, the Antique report  suggested. As the industry awaits demand recovery, strategic focus on cost management and consolidation remains paramount.