TCS, Tech Mahindra, Coforge, Mphasis: IT stocks picks and investment ideas after Accenture results ahead of Q2 earnings

IT stock picks: Brokerage firm Choice Broking has identified Indian IT stocks as potential investment picks for traders following Accenture’s fourth-quarter results and ahead of the upcoming second-quarter earnings season.

In a recent note, the brokerage firm preferred Tata Consultancy Services (TCS) and Tech Mahindra among Tier-1 IT stocks, meanwhile, recommended Coforge and Mphasis as top investment ideas among mid-cap stocks.

“We, therefore, forecast FY27 to remain another subdued growth year for Indian IT, with AIled productivity pass-throughs, pricing pressure and continued softness in discretionary spending projected to constrain reported growth. Within Tier1, we prefer TCS, TECHM and, among mid-caps, we have COFORGE and MPHASIS as our preferred investment ideas,” the brokerage firm said.

TCS share price performance

TCS share price have gained 0.44% over the past five trading sessions, however, the stock remained under pressure over longer periods, declining 9.90% in one month and 16% over the past six months.

TCS shares have fallen 35.68% year-to-date and 30.53% over the past year, reflecting sustained weakness in the stock. The decline extends to the longer term, with shares losing 47.25% over five years. Despite the recent downturn, TCS has delivered a cumulative return of 1,625% since its listing, highlighting its long-term wealth creation history.

Tech Mahindra share price performance

Tech Mahindra shares have delivered a mixed performance across different time frames. The stock gained 0.90% in Thursday’s session, while it has declined 3.69% over the past month.

Over the last six months, however, the stock has gained 6.11%, indicating some recovery over the medium term. On a year-to-date basis, Tech Mahindra remains down 4.34%, reflecting the pressure seen in the stock during the year.

Coforge share price performance

Coforge share price has delivered a mixed performance in the near term, gaining 2.35% over the past week but declining 7.11% over the last month. Despite the recent monthly weakness, the stock has remained positive on a year-to-date basis, with a 10.28% gain, indicating that it has retained part of its earlier momentum.

Over the longer term, Coforge has generated stronger returns for investors, rising 14.07% over one year, while gaining 78.86% over three years and 72.93% over five years.

Mphasis share price performance

Mphasis shares have remained under pressure across most time frames, despite a modest 0.73% gain over the past week. The stock has declined 9.27% in the past month, while its year-to-date performance stands at -20.45%, reflecting sustained weakness in the stock amid pressure on the IT sector.

Over the longer term, Mphasis has also delivered negative returns, with the stock down 16.38% over one year, 5.32% over three years and 25.64% over five years.

Accenture’s Q4 results 2026

Accenture posted better-than-expected fourth-quarter results and gave a positive revenue outlook for fiscal 2027, boosting sentiment across the global IT services sector.

The company reported fourth-quarter revenue of $18.7 billion, marking a 6% year-on-year increase in US dollar terms and 7% in local currency. Revenue surpassed the market consensus estimate of $18.04 billion and exceeded the upper end of Accenture’s own guidance.

For fiscal 2027, Accenture expects revenue growth of 3-6% in local currency, indicating resilient demand for its consulting and technology services despite continued geopolitical and macroeconomic uncertainties.

Profitability also improved significantly during the quarter. GAAP operating margin rose 370 basis points year-on-year to 15.3%, while GAAP diluted earnings per share increased 46% to $3.29.

For the full fiscal year, revenue stood at $74.2 billion, up $4.5 billion or 6% in US dollar terms. Full-year GAAP operating margin increased 70 basis points to 15.4%, while adjusted EPS rose 8% to $13.97.

Accenture’s fourth-quarter bookings rose 4% in US dollar terms and 5% in local currency to $22.2 billion. Full-year bookings stood at $84.5 billion.

Free cash flow came in at $2.8 billion during the quarter and $11.6 billion for the full fiscal year. The company returned a record $11.5 billion to shareholders in fiscal 2026, including $7.5 billion through share repurchases and redemptions.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.