Accenture’s latest quarterly performance is easing concerns around artificial intelligence disrupting the IT services model, but signals that growth for Indian peers will remain steady rather than sharp, with demand still anchored in efficiency-led spending.
The company’s results point to a stabilising demand environment, where AI is driving deal momentum and supporting growth, but not yet translating into a broad-based acceleration in revenues. Analysts said this offers a tempered but constructive read-through for Indian IT firms ahead of their March quarter earnings.
Accenture reported about 8% year-on-year revenue growth in the February quarter and bookings of over $22 billion, marking the third consecutive quarter of deal wins above the $20 billion mark. It also raised its full-year revenue growth guidance to 3–5%, indicating confidence in pipeline conversion despite macro uncertainty.
Industry analysts said the numbers reflect a market that is stabilising rather than rebounding. Growth continues to be led by smaller, AI-led and cost-focused deals, while large discretionary programmes remain delayed and decision cycles elongated.
“Accenture’s performance indicates a stable demand environment with revenue growth likely to remain subdued for Indian IT peers,” analysts at ICICI Securities said, adding that growth is likely to stay in the low- to mid-single digit range.
AI Narrative Shifts
At the same time, concerns that AI could structurally reduce IT services revenues appear to have moderated. The current trend suggests AI is being deployed to improve productivity and enable transformation programmes, rather than compress pricing across the board.
Pricing trends remain broadly stable, although the nature of contracts is evolving. Analysts said clients are increasingly seeking outcome-based and non-linear pricing structures, reflecting a shift towards measurable returns rather than pure headcount-linked billing.
“Models are likely to evolve with a shift towards non-FTE (full-time equivalent) linked pricing,” ICICI Securities said.
Pricing Models in Transition
Demand visibility, however, remains cautious. Budgets for calendar 2026 are largely unchanged, with enterprises reallocating spends towards AI, cloud and data rather than expanding overall technology budgets. This is keeping growth intact but limiting incremental upside.
“Clients are embedding AI into core enterprise systems following ERP modernisation, driving a second wave of transformation investments,” analysts at Motilal Oswal said.
Accenture’s performance also highlights an execution gap. Analysts said that while global players are already scaling AI into revenue, Indian IT firms are still in the process of converting capabilities into consistent growth.