{"id":53877,"date":"2025-03-21T13:18:37","date_gmt":"2025-03-21T07:48:37","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=53877"},"modified":"2025-03-21T13:19:22","modified_gmt":"2025-03-21T07:49:22","slug":"infosys-wipro-adrs-fall-3-after-accentures-revenue-projection","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/infosys-wipro-adrs-fall-3-after-accentures-revenue-projection\/","title":{"rendered":"Infosys, Wipro ADRs Fall 3% After Accenture\u2019s Revenue Projection"},"content":{"rendered":"
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If you\u2019ve been watching the IT sector, you might have noticed a sudden drop in Infosys and Wipro\u2019s stock performance on the New York Stock Exchange<\/a> (NYSE). On March 20, 2025, the American Depository Receipts (ADRs) of Infosys fell by 3.6% to $17.9, while Wipro\u2019s ADRs dropped by 3.2% to $2.97. This came right after Accenture released its second-quarter earnings and raised the lower end of its full-year revenue forecast, expecting growth between 5% and 7%, up from the earlier 4% to 7% range. Source: <\/strong>Economic Times<\/strong><\/a><\/p>\n\n\n\n

So, what exactly happened, and why did Infosys and Wipro\u2019s ADRs take a hit despite Accenture\u2019s optimistic forecast? Let\u2019s break it down step by step.<\/p>\n\n\n\n

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Source:  <\/strong>NYSE<\/strong><\/a><\/figcaption><\/figure>\n\n\n\n

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What is an ADR, and Why Does It Matter?<\/strong><\/h2>\n\n\n\n

Before we dive into the details, let\u2019s clarify what ADRs are. American Depository Receipts (ADRs) allow foreign companies to trade their shares on U.S. stock exchanges. Instead of buying shares directly from Infosys or Wipro<\/a> on the Indian stock market<\/a>, U.S. investors can purchase ADRs, representing a specific number of shares in the company. This allows global<\/a> investors to trade these stocks without dealing with foreign exchanges.<\/p>\n\n\n\n

Since Infosys and Wipro are major players in the Indian IT industry with significant business in the U.S., analysts and investors worldwide watch their ADR performance closely.<\/p>\n\n\n\n

Accenture\u2019s Earnings Report: The Key Trigger<\/strong><\/h3>\n\n\n\n

Accenture, one of the biggest IT services firms globally, released its second-quarter earnings report, showing signs of steady growth. The company raised its full-year revenue forecast, expecting annual growth of 5% to 7%, citing strong demand for AI-powered tools and cloud migration services.<\/p>\n\n\n\n

However, market expectations were slightly higher. Analysts had anticipated a more optimistic forecast, closer to 5.7%, and Accenture\u2019s slightly conservative guidance triggered a ripple effect in the IT sector.<\/p>\n\n\n\n

Some key takeaways from Accenture\u2019s Q2 earnings report:<\/p>\n\n\n\n