Accenture’s better-than-expected fourth-quarter results and upbeat fiscal 2027 outlook triggered a broad rally across IT stocks in US on Thursday, with Cognizant, IBM, Salesforce and Indian IT stocks gaining sharply.
Cognizant Technology Solutions led the move, rising 11.8%. IBM jumped 6.06%, while Salesforce gained 3.85%. The positive sentiment extended to Indian IT stocks listed in the US. Infosys ADRs climbed 9%, while Wipro ADRs rose 10%.
Nasdaq-100 was trading 0.48% higher giving a positive start for technology stocks on Wall Street this month.
Accenture Shares Jump
Accenture shares surged after the consulting and technology services major reported stronger-than-expected fourth-quarter results and provided a positive outlook for fiscal 2027. The stock was quoted at around $223.65 on Thursday at 9:40 EDT, compared with the previous close of $183.37. At that level, the shares were up about 22%, although earlier pre-market indications had shown the stock gaining as much as 20%.
The sharp move came after investors responded to the company’s revenue beat, earnings growth and fiscal 2027 guidance.
Accenture reported fourth-quarter revenue of $18.7 billion, up 6% in US dollar terms and 7% in local currency. The figure was ahead of the estimated $18.04 billion.
For the full fiscal year, revenue stood at $74.2 billion, up $4.5 billion, or 6%, from the previous year. The company also reported strong profitability. Fourth-quarter GAAP diluted EPS came in at $3.29, up 46% from a year earlier. Adjusted EPS increased 9% from the year-ago quarter.
For fiscal 2026, GAAP diluted EPS rose 12% to $13.56, while adjusted EPS increased 8% to $13.97.
Accenture’s fourth-quarter bookings stood at $22.2 billion, up 4% in US dollars and 5% in local currency. Full-year bookings reached $84.5 billion.
Accenture expects fiscal 2027 revenue to grow 3% to 6% in local currency.
The company expects fiscal 2027 GAAP diluted EPS of $14.39 to $14.81, representing growth of 6% to 9%. It also expects to return at least $9.5 billion in cash to shareholders during the year.