Infosys To LTIMindtree: JPMorgan Cuts IT Firms' Target Prices Amid Soft Growth Outlook

JPMorgan has issued a revised outlook for India's IT sector, cutting target prices for several leading firms including Tata Consultancy Services Ltd., Infosys Ltd., HCL Technologies Ltd., Wipro Ltd., LTIMindtree Ltd., Mphasis Ltd., Coforge Ltd., Persistent Systems Ltd., KPIT Technologies Ltd., Tata Elxsi Ltd., and Tata Technologies Ltd. The brokerage anticipates a challenging year ahead, with fiscal 2026 guidance expected to reflect continued modest growth.

JPMorgan's top picks for the quarter include Coforge, Infosys, KPIT Tech, LTIMindtree, and Tech Mahindra. Conversely, the brokerage advises avoiding TCS, Wipro, HCL Tech, Tata Tech, and Tata Elxsi.

The uncertain macroeconomic environment, driven by fears of a US recession and tariff hikes, is expected to impact client decision-making and result in a soft start to FY26. Revenue growth guidance for FY26 is anticipated to be modest, with Infosys and HCL Tech expected to guide for 2-5% and 3-5% growth respectively. KPIT Tech is projected to guide for 13-16% growth.