Quarter 1 Financial Results Announcements Schedule: Anticipated Declarations by TCS, Infosys, Wipro, and HCL Technologies
India's leading IT companies, Tata Consultancy Services (TCS), Infosys, HCL Technologies (HCLTech), and Wipro, are preparing for muted to modest revenue growth, or even declines, in the first quarter of the financial year 2026 (Q1FY26). This anticipated sluggish performance is primarily attributed to weak global tech demand and cautious corporate spending.
According to industry predictions, top-tier Indian IT firms are anticipated to report low single-digit to flat revenue growth or slight declines, reflecting the sluggish global technology spending and slow deal momentum. While Infosys shows relative resilience with modest growth and margin expansion, TCS, HCLTech, and Wipro are likely to see slight revenue contractions, impacted by deal ramp-downs, tariff headwinds, and cautious client spending.
TCS, for instance, is expected to experience a decline of about -0.4% due to reduced revenues from the BSNL deal. On the other hand, Infosys is projected to grow by around 1.7%, led by the Financial Services sector and aided by the consolidation of MRE Consulting and Missing Link, with a possible guidance upgrade. However, HCLTech may see a 0.8% revenue decline in Q1, with softness in both IT services and product segments. Wipro, too, is anticipated to face a decline of around -2.5%, attributed to company-specific issues in Europe and weak discretionary spending.
Earnings season for these companies starts with TCS on July 10, followed by HCLTech and Infosys later in July. Notably, Wipro has not announced the date for the release of its Q1FY26 earnings.
Despite the challenging environment, analysts predict a mixed performance for these IT companies. For instance, Kotak expects Infosys to report a 1.6% sequential revenue growth in Q1FY26 and predicts a revision of its FY26 revenue guidance upward to 1-3% from the earlier 0-3% range. HSBC, meanwhile, expects EBIT margins for TCS to remain flat, even with the deferral of annual wage hikes.
In a positive note, mid-tier IT firms like Coforge, Persistent, Hexaware, and Mphasis are expected to outperform, showing stronger growth amid this cautious environment.
The slowdown in the tech sector is largely due to economic challenges in the US and Europe, leading to pressure on global tech spending. Both HSBC and Kotak agree that FY26 is shaping up to be another year of slow growth for the tech sector.
Despite the challenges, there are signs of resilience. For Infosys, the growth in revenue is supported by more billing days and steady performance in its financial services vertical. Moreover, margins for Infosys are likely to remain stable, according to Kotak, due to aggressive cost controls. Similarly, Wipro's margins are expected to remain stable due to these same cost controls.
In conclusion, the weak global tech demand environment in Q1FY26 is expected to result in subdued revenue performance with slight margin pressures for Indian IT giants, particularly for TCS, HCLTech, and Wipro. However, Infosys is poised for modest growth and margin improvement, reflecting the broader cautious stance of global clients and tariff-related challenges affecting the sector.
- Amid the sluggish global technology market, Defi predictions suggest that top-tier Indian IT firms, such as TCS, HCLTech, and Wipro, may experience slight declines in revenue, while Infosys is projected to show relative resilience with modest growth.
- Technology advancements in the Decentralized Finance (DeFi) sector indicate that mid-tier IT firms like Coforge, Persistent, Hexaware, and Mphasis could outperform, showing stronger growth in the current cautious climate.
- In the face of economic challenges in the US and Europe, leading to pressure on global tech spending, there are still signs of resilience for some IT companies, such as Infosys, with stable margins and growth supported by more billing days and steady performance in its financial services vertical.
