TCS Reports Profit in Q4, What About Infosys and Wipro?

Indian IT firms are gearing up to disclose their Q4 results, following the impressive profit reported by Tata Consultancy Services (TCS) last week. TCS exceeded street estimates with the help of artificial intelligence and cloud computing, sparking optimism for the sector. All eyes are now on Infosys and Wipro to see if they can replicate TCS’s success.

Investors are eager to know if there will be a rebound in client spending and if earnings will receive a boost. TCS’s positive numbers have already brightened the outlook, but the focus remains on Infosys and Wipro’s revenue forecasts and commentary on client spending trends. TCS’s statement that the 2025 fiscal year will outperform 2024 based on deal wins trends adds to the anticipation.

Infosys is set to announce its Q4 results on Thursday, with expectations of modest revenue growth despite cost cuts and project delays from clients. The annual revenue at Infosys is projected to show the slowest growth since 2018, with fourth-quarter profit likely to increase slightly, although salary hikes may impact margins. With a significant portion of revenue coming from financial services and insurance, Infosys faces challenges in these sectors due to decreased client spending.

On Friday, Wipro will announce its Q4 results, with expectations of a second consecutive year of shrinking profits. The recent resignation of CEO Thierry Delaporte adds to the uncertainty, as new CEO Srinivas Pallia steps in. Analysts have mixed opinions on Pallia’s appointment, with some expressing concerns about Wipro’s execution issues persisting, while others believe his three-decade tenure at the company will be advantageous in navigating the challenges ahead.