Indian IT stocks weakened significantly on Friday after Accenture lowered its full-year revenue growth forecast. Market concerns that slowing global corporate technology spending and order uncertainty could continue to weigh on the performance of outsourcing companies.

Infosys led the decline, and the sector's losses widened.

Shares of several major Indian IT companies fell as much as 7% during Friday's trading. Infosys led the decline, with the Nifty IT index falling more than 5% intraday, indicating a significant weakening of sentiment in the sector.

The immediate trigger for this decline was Accenture's downward revision of its revenue growth guidance for the fiscal year ending August 2026 following its latest earnings report. The company lowered its forecast from 4% to 5% to 3% to 4%.

Accenture says revenue is below expectations

In an interview with CNBC, Accenture CEO Julie Sweet said the company's third-quarter revenue was $90 million less than market expectations, with its Middle East operations also contributing about $100 million in impact.

As a leading global professional services and technology consulting firm, Accenture's performance and guidance are often regarded by the market as an important reference for changes in demand in the IT services industry. Following this downward revision, investors have become more cautious about the growth prospects of the Indian outsourcing sector.

Citigroup highlights AI and macroeconomic pressures.

Citigroup stated in a report released on Thursday that it remains cautious about the Indian IT sector. The firm noted that the Nifty IT Index currently trades at approximately 16 times its forward P/E ratio for the next year, while Accenture's is around 10.

Citigroup believes that the business disruptions brought about by AI, increased industry competition, and the global competence center (GCC) trend are all changing the growth environment for traditional IT outsourcing companies. At the same time, macroeconomic uncertainties are also putting short-term pressure on the industry.

Judging from market reactions, investors are currently more focused on order growth, customer spending pace, and the speed at which AI is reshaping service models. Accenture's recent guidance downgrade further amplifies these concerns.