Infosys, Wipro ADRs surge over 3% on NYSE after Accenture Q1 earnings beat Wall Street estimates

Infosys, Wipro ADRs Today: American Depository Receipt (ADR) shares of India's leading information technology (IT) service providers Infosys and Wipro witnessed a sharp rise on the New York Stock Exchange (NYSE) after global IT major Accenture's first-quarter earnings beat Wall Street estimates across most metrics. 

On Thursday, Infosys's ADR surged 3.58 per cent to $23.46 on the American stock exchange, while Wipro's ADR rose nearly 2.40 per cent to $2.7171. American Depositary Receipt is a tool for foreign and multinational companies 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.

Also Read: Accenture Q1 Results: IT major beats quarterly revenue estimates on strong genAI service demand

Accenture Q1 Earnings

Accenture beat Wall Street estimates for first-quarter revenue and profit on Thursday, driven by growing demand for its services to help clients adopt AI-powered tools. Accenture is leveraging GenerativeAI across industries to help clients optimize operations, from predictive manufacturing maintenance to automating advertising operations workflow.

Due to an increase in projects utilizing the service, its GenAI business recorded new bookings of $1.2 billion and about $500 million in revenue. The company's new bookings, a key indicator of future revenue, rose to $18.7 billion for the first quarter from $18.4 billion a year earlier.

Also Read: Accenture ushers in holiday season with $1.2 billion in Gen AI orders

The IT provider said it has increased its data and AI workforce to 69,000 and plans to reach 80,000 by 2026, indicating growing demand for its services. Accenture raised its annual revenue growth forecast to between 4 -7 per cent from its earlier estimate of 3-6 per cent. It forecasted second-quarter revenue of $16.2 billion to $16.8 billion.

“We delivered broad-based revenue growth across both consulting and managed services, and across each market and industry group, gaining market share,” said Chairperson and Chief Executive Officer Julie Spellman Sweet.

The global IT giant's first-quarter revenue was $17.7 billion, beating analysts' estimates of $17.12 billion. This growth was driven by the Americas and EMEA regions and across the public service and health industries.

Also Read: Wall Street today: Dow rebounds 200 points after US Fed’s hawkish cut, set to snap 10-day decline; Accenture up 6.5%