This earnings season comes at a time when global demand for IT services remains uncertain
India’s top IT companies—TCS, Infosys, Wipro, and HCL Technologies—are preparing to release their financial results for the first quarter of FY26. These companies are among the most valuable and influential firms in India’s technology sector. Their performance often sets the tone for the broader stock market, especially for investors focused on the IT and digital services industry.
This earnings season comes at a time when global demand for IT services remains uncertain. Rising inflation, delayed project approvals, and cautious spending by international clients are creating headwinds for revenue growth. Despite these challenges, analysts are eager to see how these tech giants manage costs, secure new deals, and maintain margins.
TCS to Kick Off the Season on July 10
Tata Consultancy Services (TCS), India’s largest IT firm, will be the first to report its Q1 FY26 earnings. The board of TCS will meet on July 10 to approve the quarterly results and consider an interim dividend.
Market experts expect TCS to show flat or modest revenue growth for the quarter. In constant currency terms, growth may stay close to 0–1%. Margin pressures may be visible due to reduced momentum in large government projects like the BSNL rollout. However, some of the pressure may ease because of favorable currency movements.
Investors will closely watch the company’s deal bookings. Analysts estimate that TCS may report deals worth $7–10 billion this quarter. Any sharp drop in this number may raise concerns. TCS is also expected to comment on performance in key verticals such as retail and manufacturing, which have been facing slower demand globally.
Infosys to Announce Results on July 23
Infosys, the second-largest IT company in India, will release its Q1 FY26 results on July 23. The board will meet on July 22 and 23 to finalize the numbers. This announcement comes after the company previously lowered its guidance for the full financial year due to weak demand, especially in the retail and manufacturing sectors.
Revenue and profit growth are expected to remain soft this quarter. Infosys had reported a drop in deal wins in the previous quarter, from $4.5 billion down to $2.6 billion. The upcoming results will reveal whether the company has been able to reverse that trend.
Investors will also monitor the company’s post-results call with analysts, where the management usually shares more details about ongoing deals, demand outlook, and hiring strategies.
Wipro to Release Earnings on July 17
Wipro will declare its Q1 FY26 results on July 17, after market hours. The company has struggled with revenue growth over the past few quarters. Analysts expect this trend to continue, though margins may remain stable or show a slight decline.
The focus will be on Wipro’s performance in areas like cloud services, cybersecurity, and digital transformation. These segments have contributed positively in the past, and any improvement here could help balance weaker performance in traditional IT services.
Wipro’s commentary on client spending and deal renewals will be important. Investors also await updates on workforce management, attrition rates, and plans for cost control in the second half of the financial year.
HCL Tech to Report on July 14
HCL Technologies will announce its results for the June quarter on July 14. The company’s board will also consider a second interim dividend on the same day. In the previous quarter, HCL Tech saw a 6.2% fall in profit, though revenues increased by 1.2%.
This quarter, the company may highlight progress in AI and automation deals, including its partnership with Just Energy, a North American utilities firm. HCL Tech is expected to show stable performance in software services, with some pressure in engineering and infrastructure services.
Dividend decisions will be an important signal. A strong dividend will show that the company remains confident about its cash flows and future earnings.
What to Watch in These Q1 Results
The Indian IT sector is navigating through a challenging business environment. Growth in global IT spending has slowed, and clients are more cautious with budgets. Still, these companies continue to invest in emerging areas like cloud computing, artificial intelligence, and digital transformation.
Here are some key themes to look out for in the Q1 earnings reports:
Revenue Trends and Demand Signals
Most analysts expect low single-digit revenue growth across all four companies. The demand for digital services from US and European clients has been soft, especially in retail, telecom, and manufacturing. Comments from management on future deal pipelines will offer valuable insights into client behavior.
Operating Margins Under Pressure
Rising employee costs, global inflation, and project delays are putting pressure on profit margins. Companies have been trying to manage these challenges by controlling expenses and focusing on high-margin contracts. This quarter’s margin trends will show how successful these strategies are.
Large Deal Announcements
In the IT sector, large deals often drive investor sentiment. Deals worth more than $50 million are considered major wins. Infosys disappointed last quarter with a sharp drop in such deals. Markets now expect TCS and HCL to deliver stronger performance in this area. Any surprise announcements could lift share prices.
Dividend Declarations
Dividends are another important indicator of a company’s financial health. TCS and HCL Tech are expected to declare interim dividends. Investors will look for consistency in payout policies, especially at a time when free cash flow generation may be slower due to market uncertainty.
Geopolitical Factors and Trade Risks
Recent developments in global trade, including tariff announcements from the United States, are creating uncertainty for Indian IT exporters. These companies earn a large portion of their revenue from the US and Europe. Any disruption in trade or regulation may impact business growth in the coming quarters. Management commentary will likely include views on how these external factors could shape strategy going forward.
Final Thoughts
The Q1 FY26 results of TCS, Infosys, Wipro, and HCL Technologies are among the most anticipated announcements this earnings season. These companies face strong headwinds, but they also have deep industry experience and diversified service lines.
TCS sets the pace on July 10, followed by HCL Tech on July 14, Wipro on July 17, and Infosys on July 23. Each update will provide clues about the future of India’s IT industry and how it plans to overcome a challenging global landscape. Investors, analysts, and clients will all be watching closely. The numbers, along with forward-looking statements, will shape market sentiment and investment decisions in the weeks to come.
