TCS vs Infosys vs Wipro Q4 Results: Which IT sector Q4 earnings signal? What should investors do? | Einsmark news

Large Indian IT players -TCs, Infosys and Wipro -have reported a disappointing Q4FY25 earnings against the background of big winds such as the slowdown of global growth, persistent demand -uncertainty and concerns about US trade policies. Although the Q4FY25 results of Indian IT businesses show mixed performance on key numbers, the cautious tone of their management for FY26 amid global uncertainties is a matter of concern. TCS vs Infosys vs Wipro Q4 Results TCS placed the slowest turnover growth in four years at £ 64,479 at £ 61.237 crore in the same period. The consolidated profit after tax (PAT) for Q4FY25 dropped 1.7 percent to £ 12224 at the profit of £ 12,434 crore reported for the corresponding quarter of the previous financial year. Infosys reported a 11.75 percent decrease on an annual basis (yoy) in the consolidated net profit for Q4FY25 to £ 7,033 crore. The company’s turnover from the quarter reviewed increased by 8 percent years to £ 40.925 from £ 37.923 in the corresponding quarter of the last financial year. Instant currency has projected up to 3 percent revenue growth for FY26 in constant currency, its worst guidance since April 2009. Wipro reported a year-on-year increase in the consolidated net profit to £ 3,569.6 crore. Consolidated revenue from the quarter operations stood almost flat at £ 22.504.20 crore. After adjusting for exchange rate fluctuations, Wipro expects the revenue of the Q1FY26 IT services to fall by 1.5 percent to 3.5 percent compared to the previous quarter. What is the IT sector Q4 earnings signal? The biggest IT players’ Q4 numbers and growth prospects indicate the worst, perhaps not behind. Although demand has been poor over the past few quarters amid increased interest rates and sticky inflation, US President Donald Trump’s tariff policies have exacerbated the concerns about economic growth. Most experts believe the US can see a recession, and a trade war will significantly put in place worldwide economic growth. The sector seems to be at a bow, as the industry is struggling with uncertainty arising from Trump’s rates, the economic slowdown and the rise of artificial intelligence (AI). Experts believe that the financial year 2025-2026 would be challenging, although it could be slightly better than the past financial year. “We expect the Indian IT businesses to face a challenging FY26 (better than FY25), reflecting macroeconomic challenges and uncertainties about customer spending, but focusing on digital, cloud and AI capabilities will help maintain long-term growth,” said Rajesh Sinha, senior research analyst. “The biggest concern for Indian IT businesses is US President Donald Trump’s reciprocal rates and sectoral rates, which could force businesses to reconsider their technical spending, causing delays in decision -making,” Sinha said. Sinha highlighted the fault lines in IT Majors’ Q4 results. He underlined that TCS reported its second consecutive year of single-digit growth. During the call, TCS mentions that delays in decision -making regarding discretionary investments were observed. Infosys also reported lower -than -expected results, with constant currency revenue that dropped 3.5 percent QOQ and dollar income dropping 4.2 percent QOQ. Infosys also led a revenue growth of 0-3 percent in FY26 in constant currency terms, lower than expected, reflecting uncertainty in the global market, while the margins maintained at 20 percent to 22 percent, Sinha said. Wipro also missed estimates and led for an income decline of 1.5-3.5 percent in Q1FY26 due to weakened customer spending, Sinha noted. What should investors do? Experts look careful about it at this time. Some advise you to wait for the next one to two quarters to get clarity before putting any bets on it. Prashanth Taps, senior vice president (research) at Mehta Equities, said investors should use a cautious approach to the near medium term in the Indian IT sector. This is due to challenges and weaknesses in the Western markets, tariff impact and spent on uncertainties across the customers. “We believe that Q1FY26 and Q2FY26 will be vigilant for the sector, and investors should consider a ‘wait-and-watch approach’ until we see clear signs of recovery in the Western countries’ microeconomic data points, such as an increase in microeconomic data points and uncertainty phase,” says Prashanth Tapse, ” Mehta ties. Read all market -related news here read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or brokerage companies, not coin. We advise investors to check with certified experts before making investment decisions, as market conditions can change quickly, and conditions can vary. First Published: 18 Apr 2025, 09:25 AM IST