TCS overtakes Accenture as world's most valuable IT services firm
What's the story
Tata Consultancy Services (TCS) has surpassed Accenture to become the world's most valuable IT services company for the first time since 2021. The shift in market capitalization comes after a major sell-off in Accenture shares, triggered by weaker-than-expected fourth-quarter revenue guidance and a reduction in its full-year growth forecast. As of Thursday's close, TCS was valued at $84.6 billion, about $7 billion more than Accenture's market cap of $77.6 billion, according to Bloomberg data.
Market fluctuations
Market cap shift since late 2021
Accenture's market capitalization peaked at $263 billion in December 2021, while TCS crossed the $200 billion mark a month later. However, the tables have turned now with Accenture's shares losing more than half their value since January this year. Meanwhile, TCS has seen its market capitalization decline by about 30% over the same period.
Sector impact
Impact on global technology services sector
Accenture's warning of slowing revenue growth due to artificial intelligence reshaping parts of its business and client spending patterns has impacted the global technology services sector. Shares of IBM and Cognizant Technology Solutions fell nearly 7% each, reflecting broader concerns across the sector. US-listed shares of Infosys declined by 6%, while Wipro ADRs fell by 7.3%. European firms Capgemini and Sopra Steria also witnessed declines in their share prices.