India’s IT firms are expected to report muted earnings due to weak U.S. demand and holiday shutdowns, with a projected 4% revenue growth. The industry has faced challenges from U.S. tariffs and visa fees, leading to record foreign outflows from IT stocks in 2025.

Accenture’s AI-led growth outlook remains cautious, as Indian IT companies start shaping AI strategies through acquisitions. Clients are hesitant to commit to large programs amid macro and tariff uncertainties. The Nifty IT index fell 12.6% in 2025, making it the worst-performing sector.

TCS will kick off the earnings season with an expected 4.2% revenue growth. Infosys and HCLTech are forecasted to see 8.1% and 4.6% revenue growth, respectively. While earnings are expected to improve for domestic equities, IT firms face challenges like fewer working days and margin pressure from furloughs and wage hikes.

Read more at Yahoo Finance: Indian top IT firms set for another tepid quarter on weak US demand, client spending