IT stocks to buy for long term: The Indian IT stocks have been on an uptrend after the announcement of Accenture’s Q4 results, signalling broader IT spending beyond AI. In one week’s time, the TCS share price has risen over 11%, HCL Tech’s share price has appreciated around 7.50%, Wipro’s share price has shot up around 11%, and ‘s share price has skyrocketed around 18%. Meanwhile, shares are also attracting strong buying interest ahead of its Q2 results 2026 date, which falls this week. Infosys shares have surged nearly 9.50% over the past week.
Accenture’s broader IT spending beyond AI
Pointing towards the key trigger for the Indian IT majors, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said, “Accenture expects revenue growth across both consulting and managed services in FY2027. Its guidance assumes stable to slightly improving discretionary spending at the upper end, while allowing for weaker spending at the lower end.”
The SMC Global Securities expert said the Indian market estimates that AI cloud may create new opportunities for the Indian IT majors like TCS, Wipro, Infosys, HCL Tech, etc., and attributed three major reasons for the spike in the Indian IT stocks: Accenture’s strong Q4FY26 results, AI could creating new opportunities for the services-oriented IT companies, and better-than-expected Q2 results 2026 by the Indian IT companies.
Accenture’s strong Q4FY26 results, FY27 guidance
Decoding the Accenture Q4FY26 results, Mahesh M Ojha, VP — Research and Business Development at KC Securities, said, “Accenture reported better-than-expected Q4FY26 results. The Dublin-based IT major reported Q4 revenue of $18.68 billion against the $18.03 billion expected by analysts. It also projected annual revenue growth of 3-6%.”
Ojha said that AI-driven price increases and cautious spending will likely weigh on the growth of Indian IT companies, even as Accenture’s guidance suggested consistent demand in consultancy and managed services, with work related to artificial intelligence (AI) also adding to sentiment.
AI cloud creates opportunities for Indian IT firms
Pointing towards the opportunities available for the Indian IT companies through AI cloud, Seema Srivastava of SMC Global Securities said, “As enterprises move from AI experiments to large-scale deployments, IT companies are competing to secure contracts in AI-led transformation, software engineering, automation and digital services.”
The SMC Global Securities expert said that strong AI demand does not automatically translate into faster overall revenue growth or higher margins.
Better-than-expected Q2 results 2026
The Q2 numbers of several IT players, including TCS, HCL Tech, Wipro, and Tech Mahindra, were better than expected.
Sumit Pokharna, SVP- Fundamental Research at Kotak Neo, said the demand environment has not materially changed since the last quarter. Discretionary programs without near-term value remain under scrutiny. AI revenue grew faster in the BFSI sector than in other verticals.
Enterprises are investing in (1) AI native business solutions, (2) core modernisation with the help of AI, (3) autonomous GBS in horizontal functions such as finance, HR and procurement, (4) modernising legacy data estate and (5) data foundations. Cybersecurity, AI governance, AI guardrails, tokenomics, orchestration, access controls, security observability, etc., are becoming important for clients, creating a significant and growing opportunity,” said Pokharna.
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