TCS, Infosys, other IT stocks in focus as Accenture reports 6% revenue growth in Q1, strong FY26 guidance – News Air Insight

IT stocks like Infosys, HCL Technologies, Tata Consultancy Services (TCS), among others, will be in focus on Friday, December 19, after Accenture reported its first-quarter results for fiscal year 2026 on Thursday, posting a 6% increase in revenue in U.S. dollars and issuing a strong full-year guidance that could influence sentiment across the IT services sector.

For the first quarter of FY26, Accenture reported revenues of $18.7 billion, reflecting a 6% increase in U.S. dollars and 5% in local currency.

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The company also recorded new bookings of $20.9 billion, marking a 12% increase in U.S. dollars and 10% in local currency. Within this, advanced AI bookings contributed $2.2 billion.

The company’s GAAP operating margin came in at 15.3%, which was a decline of 140 basis points compared to the 16.7% margin reported in Q1 FY25. However, the adjusted operating margin rose 30 basis points to 17.0%.

GAAP diluted earnings per share (EPS) stood at $3.54, slightly lower than the $3.59 recorded in the same quarter last year. On an adjusted basis, EPS rose 10% to $3.94.

Free cash flow for the quarter was $1.5 billion. Accenture returned a total of $3.3 billion to shareholders, comprising $2.3 billion in share repurchases or redemptions of 9.5 million shares and $1.0 billion in dividend payments, amounting to $1.63 per share—a 10% year-over-year increase.

Accenture guidance for FY26

In its business outlook for fiscal 2026, the company maintained its expectation for full-year revenue growth of 2% to 5% in local currency. Excluding a 1% estimated impact from its U.S. federal business, revenue growth is projected to be between 3% and 6% in local currency.

Accenture now expects its GAAP operating margin to range between 15.2% and 15.4%, an expansion of 50 to 70 basis points. Adjusted operating margin is expected to be between 15.7% and 15.9%, reflecting a 10 to 30 basis point increase.

The company also revised its full-year GAAP diluted EPS guidance to a range of $13.12 to $13.50, indicating an 8% to 11% increase. Adjusted EPS is expected to be between $13.52 and $13.90, representing a 5% to 8% rise.

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