Accenture and Wolters Kluwer benefit massively from cheaper AI tokens and margin gains as they deploy AI. Their knowledge costs rank among the highest relative to COGS, but regulatory capture, reputation and sticky customers keep revenue broadly intact. Neither shows clear signs of slowing growth; Accenture guided to high-single-digit revenue growth from 2029. Despite enormous terminal-value compression, an unwinding AI-infrastructure trade could bring a sizeable rerating if fundamentals hold. … Show more

Accenture looks undervalued because the market seems to have decided AI kills consulting, while it could be the big winner as companies need AI implemented at scale. Q2 bookings hit a record $22.1B, AI bookings nearly doubled to $2.2B and FCF guidance rose to $10.8-11.5B. It has 85,000 dedicated AI staff, and unlike McKinsey it builds, runs and maintains AI, yet trades at 14x earnings, cheaper than Coca-Cola. This could be very wrong, but it looks interesting at these levels. x.com  x.com  x.com 

Accenture's core work of installing software for enterprises is exactly what agentic AI does first and cheapest: the coding, testing and documentation that fill billable hours. For ten years it compounded as the firm, with 786,000 people and $70B in revenue, that taught the Fortune 500 to use its tools. Now those tools may not need a teacher. The stock is down 58% in a year and breaking down both fundamentally and technically. x.com 

Infosys and other Indian IT firms should do very well because the market for helping legacy businesses adopt AI is massive. Rather than another nail in the coffin for Indian IT, as @agrawalmohit12 put it, AI adoption needs a service industry around it, and Infosys rising 4.3% on the day validates that. x.com  x.com 

Hardware is squeezing software as enterprises redirect budgets to scarce servers, GPUs and storage, favoring semiconductors over software. IBM's Q2 revenue of $17.2B missed its $17.9B target, and its CEO said clients moved software and IT consulting budgets to secure rising-priced hardware. Microsoft, ServiceNow and Salesforce face near-term pressure while Dell and Micron benefit. Aehr Test's beat and raised guidance counter claims the chip cycle is dead. x.com 

Accenture's headcount-based consulting model is being cannibalized by AI pure-plays, and it is hard to win in AI when the entire model is selling human labor. Bookings of $19.3B came in below last year's $19.7B, and the stock is making new 52-week lows. Headcount reductions look inevitable across the industry. x.com 

ServiceNow is using AI to remove the 'implementation tax' that drove its stock down as much as 60%, turning its biggest weakness into a strength. Its Claude-powered Build Agent lets non-technical staff create workflows and apps in plain English, and it now deploys from tools like Cursor and Claude Code into ServiceNow's governed runtime. Now Assist ACV is tracking past $1.5B versus a $1B target, million-dollar customers grew over 130%, and renewals held at 97%. Its moats remain. x.com 

Software companies face a multi-year repricing because AI has removed the scarcity that made software valuable. For 20 years building software required engineers, letting SaaS firms charge monthly fees forever; when anyone can build a working product in a weekend with Claude, software stops being the moat. Atlassian is down 75%, HubSpot 69% and Figma 86%, and layoffs show headcount no longer scales with output. Survivors will be those with distribution, data and trust underneath. x.com 

ServiceNow, Palantir, Microsoft and Zeta are integrating AI and growing fast, so the AI-scare valuation reset is an entry point. Fears that AI will eat SaaS, plus capex questions, compressed valuations, yet ServiceNow's Q1 revenue rose 22% with guidance raised, Microsoft's Azure grew 40%, Zeta's revenue rose 50% with high-30s growth guided, and Palantir guides about 61% growth with US commercial over 115%. AI is a tailwind for platforms that orchestrate it, and they deliver Rule of 40+ at scale. … Show more

ServiceNow's growth comes mostly from existing customers routing more workflows through the platform, so revenue can rise with workflow density even if seat counts stay flat or fall. Customers usually start in IT service management, then add HR, security operations and customer service, and net retention has run well above 100%. Q1 2026 subscription revenue grew 22% and RPO of about $27.7B rose 25%. The central question is whether AI-driven automation speeds up or slows that expansion cycle. … Show more