Infosys, Wipro ADRs Drop Nearly 3% On NYSE After Accenture Cuts FY26 Revenue Guidance

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 declared its fourth-quarter earnings results and cut its full-year revenue guidance to a range of 2-5%.

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.

Accenture’s Fourth-Quarter 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.

The GAAP operating margin for the fourth quarter came in at 11.6%, down 270 basis points, while 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 and Dividend Payout

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. 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 may have implications for Indian investors, particularly those invested in the IT sector. Indian stock market investors should keep a close eye on the developments in the IT sector and adjust their investment strategies accordingly.

Conclusion

In conclusion, the decline in Infosys and Wipro ADRs on the NYSE after Accenture’s fourth-quarter earnings results and cut in full-year revenue guidance is a significant development for Indian investors. As the IT sector continues to evolve, it is essential for investors to stay informed and adapt to the changing market trends.