Indian IT companies Infosys, Wipro, and LTIMindtree reported better-than-expected quarterly revenue on Thursday, signalling a gradual recovery in demand as clients increasingly back artificial intelligence projects.
The positive results follow strong earnings from market leader Tata Consultancy Services last week and provide a boost to the $283 billion sector, which has faced challenges in recent quarters due to reduced discretionary spending and tariff-related uncertainties.
Infosys CEO Salil Parekh highlighted the growing focus on AI and automation: “We are benefiting from consolidation plays on automation and on using AI for efficiency. That’s the big focus that we see from our clients across industries.” He noted a “huge” opportunity in enterprise AI.
The rising interest in AI is encouraging companies to fund projects aimed at improving efficiency and driving automation, creating new revenue opportunities for Indian IT firms. Infosys, which beat analyst estimates for both profit and revenue in the second quarter, now expects full-year revenue growth of 2 to 3 percent, up from a previous forecast of 1 to 3 percent. Analysts at Jefferies said this forecast is achievable due to strong deal bookings.
Wipro, a smaller peer, expects its third-quarter revenue to range between a 0.5 percent decline and a 1.5 percent increase, benefiting from clients’ increasing AI adoption. Wipro CEO Srini Pallia said, “New demand that’s picking up is AI. Clients want to move away from proof of concepts to implementing AI and agentic AI across business processes and workflows.”
Analysts see the results as a sign that the sector is stabilising and regaining momentum. StoxBox analyst Sagar Shetty said, “The results highlight a stabilizing IT sector gradually regaining traction amid shifting client priorities toward AI and digital acceleration.” Anand Rathi’s Sushovon Nayak added that most IT firms reporting results showed “green shoots.”
The sector has particularly benefited from increased spending by financial services companies. Infosys and LTIMindtree exceeded second-quarter revenue estimates, supported by strong demand in the banking segment.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter |The Mainstream formerly known as CIO News Whatsapp Channel | The Mainstream formerly known as CIO News Instagram
About us:
The Mainstream formerly known as CIO News is a premier platform dedicated to delivering latest news, updates, and insights from the tech industry. With its strong foundation of intellectual property and thought leadership, the platform is well-positioned to stay ahead of the curve and lead conversations about how technology shapes our world. From its early days as CIO News to its rebranding as The Mainstream on November 28, 2024, it has been expanding its global reach, targeting key markets in the Middle East & Africa, ASEAN, the USA, and the UK. The Mainstream is a vision to put technology at the center of every conversation, inspiring professionals and organizations to embrace the future of tech.
