Accenture's Strong Q1 Fuels Indian IT Hopes: AI Drives Growth, But Challenges Remain

• Accenture reported strong Q1 FY26 revenue of $18.7 billion, up 6% YoY, driven by AI demand.
• Advanced AI bookings surged 76% to $2.2 billion; GenAI contributed significantly to new bookings and revenue.
• Total new bookings hit $21 billion, reflecting robust enterprise investment in automation, cloud, and AI.
• JM Financial sees a "long runway of work" for Indian IT firms, with digital core modernization intact.
• Outlook is mixed: Accenture noted uneven public sector demand and flat discretionary spending; Indian IT stock rally might be "priced in."

Why It Matters: Accenture's strong AI-driven Q1 offers optimism for Indian IT, but challenges persist.