MUMBAI, INDIA – Accenture has announced its financial results for the first quarter of the fiscal year 2026.
It reported $18.7 billion in revenue this quarter, 5% higher than the same period last year, which is within the company’s expectations. Its organic growth is at a modest 0.5%–3.5%, because of these reasons:
- ~1% revenue loss from the U.S. federal business
- ~1.5% growth from acquisition activities
Revenues from its consulting services grew by 3% compared to last year, and managed services grew 7%.
By vertical, its financial services segment grew the most, up 12% year over year.
Lastly, its revenues from AI and AI-related deals are as follows:
- This quarter
- Advanced AI bookings – $2.2 billion, which is an increase of 76%–83% year-on-year
- AI revenues – $1.1 billion, which is up 120% year-on-year
- From FY25 to date
- Advanced AI work – signed 11,000 projects worth $11.5 billion, generating $4.8 billion
What This Means for the Indian IT Sector
Brokerage analysts say Accenture’s Q1 FY26 results indicate demand for Indian IT remains steady. They also note that financial services and AI-led work are still the sector’s key growth drivers.
On another note, they remind the country’s IT outsourcing providers that clients might have the same or limited budget for technology-related investments. So, it’s possible that they won’t see a “step-up in [clients’] budgets in the March–April 2026 renewal cycle unless macro conditions improve.”
