American Depository Receipts (ADRs) of Infosys Ltd and Wipro plunged up to 10 per cent overnight, tracking Accenture's 18 per cent fall, setting stage for a selloff in Indian IT stocks today. Accenture's latest revision in FY26 revenue guidance and plans for higher inorganic growth investments spooked investors.

The consulting and IT services major, which derived $72 billion in revenues in the trailing twelve months, is followed closely in India, given the offshore IT industry business dynamics.  This is because a total of 75 per cent of Accenture's 7,98,000 workforce is based in the low-cost locations such as India and Philippines, with possibly 3,25,000 in India.

Infosys ADRs fell 9.66 per cent to $10.57 apiece. Wipro ADRs were down 3.63 per cent at $2.39 apiece.

Accenture's commentary suggests that AI is becoming an increasingly meaningful demand driver. That said, it remains insufficient to offset near-term weakness from discretionary spending pressures, elongated deal cycles and delayed large-program conversions, said Choice Institutional Equities.  

"Therefore, we continue to expect a gradual recovery trajectory for Indian IT rather than a broad-based acceleration in FY27. Within Tier-1, we prefer Infosys and Tech Mahindra and among mid-caps we have PSYS and COFORGE as our preferred ideas," the brokerage said.

Systematix said Accenture’s 3QFY26 results are a negative read-through for IT services, with softer bookings, lowered guidance and continued client caution pointing to a challenging demand environment for Indian IT. "Macro uncertainty and geopolitical tensions are delaying decision cycles, while large deal pushouts into FY27 highlight ongoing slippage risk in mega-deal closure," it said.

Accenture has taken a huge step in acquisitions and increased the spending from earlier guided $5 billion to $9 billion for FY26. Nirmal Bang sees said  it more of a desperate attempt to maintain revenue. 

"The lowering of the FY26 revenue guidance at the top end and lower deal signings affirm our stance on revenue compression and deal signing stagnation. While some of this can be linked to the ongoing conflicts in the Middle East, we believe much of this is due to AI-led shocks and efficiencies. Indian IT services should focus on scaling up AI capabilities, securing large deals, and improving operational efficiencies to mitigate margin pressures in a competitive market environment," Nirmal Bang said.