Indian IT demand is steady, according to Accenture's Q1 figures

Global IT company Accenture has reported its financial results for the first quarter of FY26, showing that demand for Indian IT services remains stable, with no major improvement or decline. Market experts say the results indicate steady business conditions, but no strong growth triggers yet.

Accenture, which follows a September–August financial year, reported quarterly revenue of $18.7 billion, marking a 5% year-on-year growth in constant currency terms, beating market expectations.

According to analysts from brokerages such as Nuvama, ICICI Securities, Nomura, and Motilal Oswal, the results suggest that demand for IT services is steady but capped in the near future. Financial services and AI-driven projects continue to be the main growth drivers.

The company maintained its FY26 revenue growth guidance at 2–5% in constant currency terms. Excluding the impact of acquisitions and a slowdown in US federal business, Accenture’s organic growth is expected to be between 0.5% and 3.5%.

Consulting revenues grew 3% year-on-year, while managed services performed better with 7% growth, showing continued strength in outsourcing deals. Among industries, financial services led growth with a 12% rise.

Brokerages described the quarter as unchanged, with no clear signs of a sharp recovery in discretionary IT spending. Accenture’s management also said technology spending levels are similar to last year, suggesting Indian IT companies may not see higher budgets in the upcoming renewal cycle unless global economic conditions improve.

On the AI front, Accenture reported strong growth. Advanced AI bookings rose to $2.2 billion, up nearly 80% year-on-year, while AI-related revenue increased to $1.1 billion, more than doubling from last year. So far in FY25, Accenture has secured $11.5 billion worth of AI projects across 11,000 deals, generating $4.8 billion in revenue.