IT Stocks Today: Infosys, Wipro, TCS, LTI Mindtree Shares Under Stress After Accenture Q2 Result

IT Stocks Today: Shares of Wipro, Infosys, TCS, LTI Mindtree, and other IT sector stocks opened on a weak note on Friday after Accenture raised concerns over macroeconomic uncertainty in its earnings for the second quarter ended February 2025. However, most of the IT stocks recovered their losses later in the day.

Infosys shares were trading 1.44% lower at Rs 1590.85 per share on BSE on Friday at 11:30 am. Whereas, Tata Consultancy shares opened in red, but later recovered and were trading 0.98% higher at Rs 3597.75 per share during Friday's intraday trading. Wipro stock was down 0.39% to Rs 266.95 per share on NSE.

Infosys, Wipro ADR decline

Infosys and Wipro's American Depository Receipt (ADR) shares witnessed massive selling pressure on New York Stock Exchange (NYSE) on Thursday after Accenture announced second-quarter earnings results. Infosys ADRs closed 2.75% down at $18.06 apiece on Thursday. Another top Indian IT firm fell significantly and closed 2.28% at $3.

American Depositary Receipt or ADR stands for a negotiable security that actually represents the shares of a foreign company on US stock markets. ADRs are similar to shares of other companies traded in the US financial markets.

Why IT sector stocks are under pressure today?

Most of the IT sector stocks, including Wipro, TCS, and Infosys stocks were under pressure on global markets, as well as on the Indian stock market after Accenture announced its Q2 earnings.

The IT major reported a 5% annual increase in its revenue to $16.7 billion in during the quarter ending in February. The company also updated its outlook for the year 2025. In its quarterly earnings report, the IT major narrowed the lower band of its full-year revenue growth outlook to 5-7% in local currency, from 4-7% earlier.

Accenture Q2 earnings

The Dublin-Ireland headquartered tech major reported a 5% increase in its revenue to $16.7 billion. The firm updated its operating margin to 15.7%, an expansion of 10 to 20 basis points over adjusted operating margin.
Accenture's gross margin for the quarter under review declined annually to 29.9% compared to 30.9% in the second quarter of fiscal 2024.

"Our second quarter results demonstrate that we continue to deliver on our strategy to lead reinvention for our clients and return to strong growth in FY25, with broad-based growth across markets, industries, and the types of work our clients seek from us," said Accenture Chair and CEO Julie Sweet in the company stock exchange filing.

Accenture reported quarterly bookings of greater than $100 million, with operating margin of 13.5%, an increase of 50 basis points compared to adjusted operating margin.

'We are seeing elevated level of global economic uncertainty': Accenture CEO

Acknowledging the current global economic scenario, Julie Sweet during the post-earning call said that the company witnessed a shift from its first quarter earnings because of rising geopolitical uncertainty.
"In recent weeks, we are seeing an elevated level of what was already significant uncertainty in the global economic and geopolitical environment, marking a shift from our first quarter FY25 earnings report in December," Mint quoted Sweet during a post earning call.