Tata Consultancy Services missed revenue estimates due to cautious client spending amid tariff uncertainty. Concerns about future demand in India’s IT sector dragged down U.S. listed shares of rivals Infosys and Wipro. CEO K Krithivasan cited delays in decision-making for discretionary spending. Consolidated sales rose 1.3% to 634.37 billion rupees, below analysts’ estimate of 646.66 billion rupees.

Uncertainty around U.S. tariffs has hindered IT companies’ hopes for client confidence. TCS saw revenue decline in four out of six verticals, with banking and financial services up 1% and tech services up 1.8%. Total order bookings were at $9.4 billion, lower than the previous quarter and year-ago period. Analysts highlight client cautiousness and revenue visibility concerns.

TCS’s net profit rose 6% to 127.60 billion rupees, higher than analysts’ expectations. U.S.-listed shares of Infosys fell 3.3%, while Wipro’s were down 4.2%. HCLTech, Infosys, and Wipro are set to report results later in July. Revenue growth uncertainty persists as companies navigate client spending patterns and project delays.

Read more at Yahoo Finance: TCS revenue falls short as tariffs cast shadow on client spending