Infosys, Wipro ADRs Decline on NYSE After Accenture’s FY26 Revenue Guidance Hike
American Depository Receipt (ADR) shares of India’s leading information technology (IT) giants Infosys and Wipro witnessed a sharp decline on the New York Stock Exchange (NYSE) after Accenture announced its fourth-quarter earnings results and hiked its full-year revenue guidance to a range of 2-5%, higher than Wall Street estimates.
What are ADRs and How Do They Work?
ADR is a tool for multinationals/foreign companies (primarily based outside the US) or organisations to trade on US stock markets, just like regular shares of US companies. In theory, an ADR is similar to a special certificate issued by a US bank. It is a negotiable certificate representing shares in a foreign company traded on US stock exchanges.
Impact on Infosys and Wipro ADRs
Infosys ADR dropped 2.41% to $16.62 on the American stock exchange, while Wipro ADR fell 1.84% to $2.67 on the NYSE. The tech-heavy Nasdaq Composite was trading 268.81 points, or 1.19% lower, at 22,228.72. The Nifty IT index ended at 34,548.30, down 1.27% on Thursday, Sept. 25, 2025.
Performance of Infosys and Wipro on the NSE
On Thursday, shares of India’s second-largest IT major, Infosys, settled 0.23% lower at Rs 1,491.20 apiece after an intraday high of Rs 1,502.70 on the NSE. Shares of Wipro settled 0.96% lower at Rs 242.25 apiece on the NSE.
Accenture’s Q4 Earnings Results
The Dublin-based tech giant beat Wall Street estimates during the fourth quarter as the revenue rose 7% year-on-year to $17.6 billion, driven by resilient demand from enterprise clients for its AI-driven consulting and services.
Key Highlights of Accenture’s Q4 Results
- The GAAP operating margin for the fourth quarter came in at 11.6%, down 270 basis points.
- The adjusted operating margin improved slightly to 15.1%, up 10 basis points.
- Accenture recorded new bookings of $21.3 billion for the quarter, bringing the full-year total to $80.6 billion.
Revenue Guidance for FY26
For Q1 FY26, revenue guidance is hiked to $18.1-18.75 billion, representing 1-5% growth. The full-year revenue growth is seen at 2%-5% in local currency, or 3%-6% when excluding a 1%-1.5% drag from US federal business.
Dividend Payout and Share Repurchases
Accenture boosted the dividend payout as it plans to give $9.3 billion to shareholders via dividends and share repurchases, a 12% rise from FY25.
Implications for Indian Investors
The decline in Infosys and Wipro ADRs on the NYSE may have implications for Indian investors, particularly those invested in the IT sector. The hike in Accenture’s revenue guidance may also impact the Indian IT sector, as it may lead to increased competition and pricing pressure.
Indian investors should keep a close watch on the developments in the IT sector and consider the potential implications for their investments. They should also consider investing in the IT sector and diversification strategies to minimize risk.