Infosys share price sinks in 2026 IT selloff after Accenture

A weak US cue hit Indian IT sentiment

Indian IT stocks came under sharp pressure after a weak set of FY26 guidance from US-based consulting and IT services major Accenture. The selling was led by the sector’s biggest names, with traders treating the guidance as a signal that demand could stay cautious across global IT spending. The move coincided with broader risk-off action in global technology names, which added to the negative tone on Indian screens.

Infosys Ltd, described as India’s second-largest IT player in the provided data, saw its shares plunge 8% to a five-year low. Tata Consultancy Services Ltd (TCS) fell 7% to a near six-year low. The selloff was not restricted to onshore markets, with American depositary receipts (ADRs) for Indian IT names also reacting.

Infosys and TCS lead the fall on the day

The drop in Infosys and TCS stood out because both are widely owned bellwethers for the sector. Their declines pulled sentiment down across IT counters as investors repriced near-term expectations after the Accenture cue. The provided data also flagged heavy selling pressure across other large-cap IT names, suggesting broad-based de-risking rather than stock-specific action.

One market-linked data point highlighted the intensity of the overnight US reaction: Infosys and Wipro ADRs had fallen up to 10% overnight. That set up a weak start for Indian IT in the following session and reinforced the view that global cues were driving price action.

ADR moves underscored the global linkage

The ADR market, which often trades while Indian markets are closed, reflected the same risk reset. “Consequently, Infosys ADRs dropped nearly 10 per cent, while Wipro ADRs fell 3.6 per cent,” said Nandish Shah, Deputy Vice President at HDFC Securities, in the provided text.

The ADR fall mattered because it provided a real-time barometer of how US investors were interpreting the demand outlook for outsourcing and consulting. When ADRs gap down sharply, domestic participants typically factor that into opening prices and intraday risk limits. In this case, the ADR decline aligned with the broader selloff at IT counters.

IBM’s slide and AI fears added to tech volatility

Alongside the Accenture-related pressure, the provided material linked part of the nervousness in global tech to IBM’s stock moves and investor concerns around artificial intelligence disrupting existing software and infrastructure models. One section stated that IBM shares tumbled over 10% at the start of trading on a Thursday, in line with a wider drop in software companies.

The same set of notes said IBM’s first-quarter performance did not ease investor concerns about AI’s impact on its infrastructure and software business. While software sales beat expectations in that account, consulting revenue was said to have fallen short of projections. IBM also reaffirmed an annual forecast of constant currency revenue growth exceeding 5%, versus expectations of over 5.1%, which some investors may have read as cautious.

Claude Code and COBOL concerns spill into India

The data also connected market anxiety to developments around Anthropic’s Claude Code and the possibility that modern AI tools could help modernise or streamline legacy COBOL systems. A separate transcript-style section claimed IBM had its biggest stock crash in 25 years with $11 billion wiped out in a single session, after investors began questioning whether IBM’s core revenue model could face pressure if COBOL modernisation becomes easier.

That transcript said IBM shares plunged 13.15% on a Monday, closing at $123.35, and that the shock waves spilled into Indian markets. It added that major Indian IT companies including TCS, Infosys, Wipro, HCL Technologies, and Tech Mahindra came under heavy selling pressure, and that more than ₹84,000 crore was wiped out from their combined market capitalisation.

Another IBM earnings snapshot: revenue beat, software miss

In a separate earnings-related snapshot included in the input, IBM reported revenue of $16.98 billion (USD 16.98 billion) and adjusted EPS of $1.80. Software revenue was listed at $1.39 billion (USD 7.39 billion), slightly below an analyst consensus of $1.43 billion (USD 7.43 billion) in that excerpt. The stock was down 9% in recent trading to $156 in the same report.

Another version of the quarterly mix in the input described infrastructure revenue at $1.1 billion (USD 4.10 billion), software at $1.4 billion (USD 7.40 billion), and consulting at $1.3 billion (USD 5.30 billion). Across these versions, the common thread was that even with overall revenue and profit beats, investors focused on software growth and management commentary for signs of demand caution.

Infosys Q2 FY26 reaction: a separate bout of selling

Apart from the Accenture-led selloff, the provided text also described a separate instance where Infosys came under pressure after releasing its Q2 results for FY26. In early trade, Infosys slipped nearly 2% to ₹1,442.55 on the BSE. Its ADR was also said to have fallen 2.25% post earnings in that section.

The same passage provided recent performance context: over the past one month, Infosys shares declined 4%, and 9% over three months. It added that the stock had declined 23% so far this year and was lower by 27% compared to the previous year. Another line in the input said Infosys ADR shares fell about 7% to $16.25 as of 7.30 pm India time, and that ahead of the earnings announcement Infosys closed at ₹1,464.55 on BSE, down about 2%.

Key figures at a glance

Market impact: what investors were pricing in

The immediate market impact in India was visible in multi-year lows for Infosys and near multi-year lows for TCS, reflecting a sharp reset in risk appetite for large-cap IT. The ADR declines, including the near 10% drop flagged for Infosys, indicated that offshore investors were also cutting exposure on the same theme.

On the US side, the IBM-related segments in the input show how quickly AI narratives can affect legacy technology and services businesses. The combination of guidance sensitivity (Accenture), software growth scrutiny (IBM), and AI-led disruption concerns (COBOL modernisation tools) formed a common backdrop: investors were reassessing the durability of revenue streams and the pace at which clients may change spending priorities.

Why the story matters for Indian IT

Indian IT companies are closely tied to global enterprise tech budgets, and US-listed peers often set the tone for sentiment. When a large US consulting player offers weak guidance, or when a global incumbent like IBM sees volatile trading linked to AI disruption fears, the risk premium for Indian IT can rise quickly.

The provided material also shows that the market reaction can vary across events. In one instance, Infosys dropped 8% in a broad selloff tied to a US guidance cue. In another, it slipped around 2% after its Q2 FY26 results even though the text described earnings growth as healthy and results broadly in line with expectations, pointing to profit booking and caution rather than a single negative data point.

Conclusion

Infosys and TCS led a sharp IT selloff after Accenture’s FY26 guidance weakened sentiment, with ADR moves reinforcing the risk-off signal. Separately, IBM’s stock volatility and AI-linked concerns around legacy systems added to global tech unease. The next major marker highlighted in the input is IBM’s earnings report scheduled for April 22, 2026, which the transcript noted as a potentially important data point for investors watching demand and AI-driven disruption signals.