Infosys ADR climbed 8.44% to $11.63, while Wipro ADR gained 7.55% to $1.78 as of 5:40 pm IST. Cognizant Technology Solutions also rose 7.07% to $61.50. Accenture shares surged 16.17% to $213.20 in pre-market trading as of 5:42 pm IST following the earnings announcement.
The broader IT rally came after Accenture reported fourth-quarter revenue of $18.7 billion, up 6% in US dollar terms and 7% in local currency. The figure was above the market estimate of $18.04 billion and also came in above the high end of the company’s own guidance range.
The company expects revenue to grow 3-6% in local currency in fiscal 2027, signalling continued demand for its consulting and technology services despite ongoing geopolitical and macroeconomic uncertainties.
Accenture also delivered a sharp improvement in profitability. Fourth-quarter GAAP operating margin stood at 15.3%, up 370 basis points year-on-year, while GAAP diluted earnings per share (EPS) rose 46% to $3.29.
For the full fiscal year, Accenture reported revenue of $74.2 billion, an increase of $4.5 billion or 6% in US dollar terms. Full-year GAAP operating margin rose 70 basis points to 15.4%, while adjusted EPS increased 8% to $13.97.
Strong bookings, cash generation
Accenture’s new bookings stood at $22.2 billion in the fourth quarter, up 4% in US dollar terms and 5% in local currency. For the full year, bookings reached $84.5 billion.
The company generated $2.8 billion in free cash flow during the quarter and $11.6 billion for the full year. It returned a record $11.5 billion to shareholders in fiscal 2026, including $7.5 billion through share repurchases or redemptions.
Chair and CEO Julie Sweet said the company had capped off another year of broad-based growth, while highlighting a new high of 141 quarterly client bookings worth $100 million or more.
For fiscal 2027, Accenture expects GAAP diluted EPS of $14.39-$14.81, representing growth of 6-9%, and expects to return at least $9.5 billion in cash to shareholders.