IT Sector Q4 Results Preview— How Will TCS, Infosys, Wipro & Other IT Peers Perform Amid US Tariff Uncertainty

The macroeconomic environment has become increasingly uncertain over the past few months, particularly for Indian IT companies heavily reliant on the U.S — their largest revenue-generating market. The renewed risk of global tariff escalation, especially under the prospect of a Trump-led administration, has heightened concerns over cross-border service continuity and outsourcing viability. This has led to a notable shift in client sentiment, with U.S enterprises becoming more risk-averse in their IT spending decisions..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..DRChoksey Report.The demand environment in Q3 FY25 reflected early signs of stabilization, with slightly improved Total Contract Value momentum, supported by small and mid-sized deal conversions. However, large deal closures remained muted, indicating that enterprises continue to maintain a cautious stance, particularly for discretionary-led digital transformation initiatives. The improvement was not broad-based, and clients showed a preference for short-tenure, costjustified projects over long-term strategic spending. The macroeconomic environment has become increasingly uncertain over the past few months, particularly for Indian IT companies heavily reliant on the U.S — their largest revenue-generating market. The renewed risk of global tariff escalation, especially under the prospect of a Trump-led administration, has heightened concerns over cross-border service continuity and outsourcing viability. This has led to a notable shift in client sentiment, with U.S enterprises becoming more risk-averse in their IT spending decisions. As a result, discretionary tech investments and large-scale transformation projects are being delayed, with client budgets increasingly being reallocated toward non-discretionary priorities such as core operations, automation, and cost optimization. .The overall sentiment reflects a pause in strategic IT spending amid fears of policy instability, trade disruptions, and potential recessionary pressure.This sentiment was echoed in Accenture’s Q2 FY25 commentary, which pointed to continued softness in discretionary spending, deal delays, and cancellations, particularly in the U.S. market. Accenture’s revenue guidance revision was primarily driven by headwinds in its federal government vertical, which is undergoing budget tightening..Click on the attachment to read the full report:.Buy Lupin; Hold Dr. Reddy's; Add Cipla, Divi's Lists DRChoksey Among Other Stocks Ahead Of Pharma Q4 Results .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

IT Sector Q4 Results Preview— How Will TCS, Infosys, Wipro & Other IT Peers Perform Amid US Tariff Uncertainty

DRChoksey identifies TCS and Infosys in the tier-1 segment and Happiest Minds in the tier-2 segment as its top stock picks for potential outperformance relative to the sector.

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IT Sector Q4 Results Preview— How Will TCS, Infosys, Wipro & Other IT Peers Perform Amid US Tariff Uncertainty

DRChoksey identifies TCS and Infosys in the tier-1 segment and Happiest Minds in the tier-2 segment as its top stock picks for potential outperformance relative to the sector.

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