India's top-tier IT services firms, Tata Consultancy Services, Infosys and Wipro, have delivered a mixed set of fourth-quarter results, reflecting a sector navigating macroeconomic uncertainty, geopolitical tensions and a gradual pivot towards artificial intelligence-led growth.
The March quarter earnings underscore a clear trend: while demand remains resilient in pockets, global headwinds such as tariffs and the ongoing Iran conflict continue to weigh on client spending and decision-making cycles.
Dollar Revenue Signals Weakness
On the dollar revenue front, the stress is visible across the board. TCS reported a 0.5% year-on-year decline in FY26 revenue to $30,017 million, its first-ever annual drop, with a sharper 2.4% fall in constant currency terms. Wipro's IT services revenue also slipped marginally by 0.3% to $10,478.1 million, although its rupee revenue rose 4%, suggesting relative stability.
Infosys, meanwhile, saw constant currency growth soften, with a decline of 1.3% to 3.1% in the March quarter, the steepest drop in four quarters, highlighting continued demand moderation.
ALSO READ: Infosys Q4 Results: Profit Surges 28%, FY27 Growth Seen At 1.5%-3.55%
Revenue Growth Holds, Margins Diverge
Despite pressure on dollar revenues, reported revenue growth remained steady. TCS led the pack with a 5.4% sequential rise in revenue to Rs 70,698 crore, beating estimates, while Infosys posted a 2% year-on-year increase to Rs 46,402 crore. Wipro reported Rs 24,236 crore in Q4 revenue, up 3% sequentially.
Margins, however, told a more differentiated story. Wipro emerged as the standout performer, with EBIT jumping 19.7% sequentially to Rs 4,181 crore and margins expanding sharply to 17.3%. TCS maintained industry-leading margins at 25.3%, with EBIT rising 6% sequentially to Rs 17,870 crore. Infosys saw a modest improvement, with EBIT margins inching up to 21%.
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AI Becomes The New Battleground
Artificial intelligence is rapidly emerging as the defining theme for the sector. TCS has taken an early lead, reporting annualised AI revenue of over $2.3 billion and strengthening partnerships with global technology leaders. This signals an aggressive push to capitalise on next-generation demand.
Wipro is also repositioning itself through its “AI Native Business & Platforms” strategy, shifting towards a services-as-software model. Infosys, while not as vocal in deal disclosures, continues to invest in AI capabilities as part of its broader digital transformation offerings. Infosys management also said that AI is seen growing faster in financial services. The company also added that AI revenue is growing 5.5% and it saw a healthy growth in Q4.
Hiring Reflects Caution
Workforce trends indicate a cautious approach. TCS added over 2,000 employees sequentially in Q4, taking its headcount above 5.8 lakh, although annual numbers declined due to restructuring. Wipro hired more than 3,000 freshers in the quarter but refrained from offering hiring guidance for FY27.
Infosys reduced its workforce by 8,440 employees sequentially to 3.28 lakh, even as attrition rose slightly to 12.6%, reflecting ongoing optimisation.
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Outlook Remains Guarded
Guidance across companies suggests continued caution. Wipro expects IT services revenue to range between $2,597 million and $2,651 million in the next quarter, implying flat to negative growth. Infosys projected FY27 revenue growth of 1.5% to 3.5% in constant currency, below expectations, while maintaining margin guidance at 20–22%.
TCS did not provide a numerical outlook but pointed to recovery in segments such as energy, resources and utilities, which posted healthy sequential growth.
Deal Wins
TCS continues to dominate in deal wins, reporting a Q4 total contract value (TCV) of $12 billion and $40.7 billion for FY26. Wipro and Infosys lagged behind with bookings of $3.45 billion and $3.2 billion respectively.
ALSO READ: Wipro Q4 Results: Net Profit Rises 12%, Revenue In Line With Estimates
Dividends, Buy Backs
In terms of shareholder returns, strategies diverged. TCS maintained its dividend-heavy approach with a final dividend of Rs 31 per share, while Wipro announced a Rs 15,000 crore buyback alongside a Rs 11 dividend. Infosys declared a dividend of Rs 25 per share.
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