Shares of major Indian IT firms came under pressure on September 26, following a cautious outlook from Accenture, which weighed on investor sentiment and dragged the Nifty IT index down over 1%, marking its sixth consecutive day of decline.
Accenture, in its Q4FY25 results, warned of slower growth in the coming year due to expected reductions in US federal spending on consulting services. The company anticipates a 1–1.5% revenue hit through August 2026 from this segment. Additionally, Accenture is laying off employees as it shifts focus toward Artificial Intelligence, stating that reskilling isn’t feasible for all roles. Similarly, TCS recently laid off over 12,000 employees.
Despite these concerns, Accenture posted better-than-expected revenue of $17.6 billion in Q4, slightly above estimates. It forecasts 2–5% growth for FY26, below the 5.3% expected.
Analysts like Goldman Sachs and Jefferies see risks to Indian IT firms’ future growth if discretionary spending doesn’t improve. Meanwhile, Trump’s administration has proposed a wage-based H-1B visa system, prioritizing higher-paid, skilled workers over the current lottery-based selection.
