TCS Beats Accenture To Be World’s Most-Valuable IT Company Briefly
Tata Consultancy Services Ltd. surpassed Accenture for the first time in a year to become the world’s most valuable information technology company, but only briefly.
As of Thursday’s close, the market capitalisation of the Tata Group flagship stood at $144.7 billion compared with Accenture’s $143.75 billion, according to Bloomberg data. But TCS failed to hold the top spot as its stock fell as much as 1.5% in early trade on Friday.
The Indian IT company earnings rose in the quarter ended September and margin jump to the highest in two years, indicating initial signs of recovery from the disruptions caused by the coronavirus pandemic.
“We are at the start of the first phase of the multi-year transformation cycle. The strong order book, a very robust deal pipeline and continued market share gains give us confidence for the future,” Rajesh Gopinathan, chief executive officer and managing director at TCS, said in a post-earnings analyst call. “The company’s positioned very strongly to benefit from secular demand drivers. We also want to say we are in the midst of sustainable demand recovery and this recovery has some more legs to go.”
In contrast, Accenture—that follows September-August fiscal—had missed estimates in the fourth quarter and expects two more quarters of low growth. It hopes to return to its pre-Covid-19 growth rates—single digits or low double digits—in the second half of fiscal 2021.