Accenture’s strong first quarter, Infosys, TCS, HCL Tech and other IT stocks in focus

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Stock market today: Share prices of Infosys, Tata Consultancy Services, HCL Technologies, Wipro and other IT stocks are in focus. Accenture’s strong performance in the first quarter of FY25 is likely to boost investor confidence. Accenture shares closed at $372.16, up 7.03%

Accenture first quarter fiscal 2025 results

IT giant Accenture reported first-quarter results on Thursday, December 19, beating Wall Street revenue forecasts. Analysts say higher customer adoption of AI-driven solutions has led to increased demand for the company’s services

According to news reports, Accenture’s first-quarter revenue was $17.7 billion, exceeding analysts’ forecast of $17.12 billion.

Analysts at Jefferies India Pvt Ltd said Accenture’s first-quarter revenue was US$17.7 billion at constant exchange rates, an annual increase of 8.0%, higher than the guidance range of 2-6% annual growth at constant exchange rates. Growth was led by consulting, which grew by 6% year-on-year, and managed services (MS), which increased by 11% year-on-year, due to good fundamentals and an increase in large deals.

Higher growth guidance is positive

Accenture raised its fiscal 2025 revenue growth guidance by 100 basis points to an annual increase of 4-7%, including approximately 3% acquisition growth. Analysts said the increase in guidance was primarily to reflect first-quarter performance and strong visibility in the second quarter.

Analysts at Jefferies India Pnt Ltd said strong net hiring and lower utilization pointed to improved revenue visibility despite unchanged demand environment

Accenture’s first-quarter revenue growth was above its guidance range, driven by faster-than-expected growth in large deals — a positive, according to Jeffferies India Ltd. Although the demand environment was unchanged, strong net hiring and declining utilization indicated improved revenue visibility.

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