Bengaluru: Accenture’s decision to reduce FY2026 revenue growth guidance has raised concerns over the pace of recovery in the global technology spending environment. Brokerage firms have warned that Indian IT services companies may face prolonged weak demand till fiscal 2027.The Dublin-based IT services giant has cut the upper end of its FY26 revenue growth guidance by 100 basis points, now expecting revenue growth of 3-4% on an organic basis or 2.5-3.5% excluding the impact of federal services. The outlook disappointed investors, sending Accenture shares down as much as 18% to about $129 on the NYSE on Thursday. US financial markets were closed on Thursday for the Juneteenth holiday.The decline in guidance overshadowed an otherwise resilient third quarter performance. Revenue in the quarter ended May 31 rose 6% year-on-year in dollar terms to $18.7 billion, while local-currency growth stood at 3% – Accenture’s slowest growth rate in eight quarters.The comments have renewed concerns for Indian IT companies, many of which derive a significant portion of revenue from discretionary technology spending. Analysts at Ambit Institutional Equities said the weakness at Accenture, widely seen as the strongest player in global IT services, is negative for demand prospects among India’s tier-1 IT companies and suggests a weaker-than-expected start to FY27.CLSA said the cut in guidance and soft managed-services order book reflected a challenging macroeconomic environment rather than disruption from AI.
