IT Sector Q2 Results Preview: No big deals, no big surprises? Quarterly earnings may stay muted – Here’s why?

IT sector Q2 preview: The IT sector is expected to report moderate to steady growth in the second quarter, according to Zee Business Research. Sequential growth for companies is likely to range between 0.2 per cent and 6 per cent. Demand is expected to remain largely stable compared to the previous quarter. However, a slowdown in large deals over the past two quarters could reflect in Q2 results.

HSBC Global expects large-cap IT companies to post dollar revenue growth of 0–2 per cent quarter-on-quarter, while mid-tier companies may see growth between 1 per cent and 5.5 per cent.

Demand trend

Recovery is expected to continue in BFSI, healthcare, and high-tech services verticals. Manufacturing and retail sectors, on the other hand, may show some softness this quarter.

Deal additions

Deal values remained strong in the previous quarter, and a similar trend is expected in Q2. TCS, Infosys, and HCL Tech have already announced several deals during the quarter. The absence of very large deals over the past two quarters may still impact overall growth.

Attrition and headcount

Most companies may see a slight increase in headcount. Employee restructuring at TCS and HCL Tech will also be closely monitored, as it could affect overall workforce dynamics.

GenAI impact

Generative AI is expected to have a 2–3 per cent deflationary effect over the next 2–3 years. Its focus on improving productivity may influence deal pricing in the sector.

H-1B updates

Management responses on H-1B visas will be closely watched. Companies may increase reliance on local subcontractors, and local hiring could pick up to meet staffing requirements.

Infosys, Wipro, TCS Q2 FY26 Results Date

– TCS will declare its results on Thursday, October 9, 2025.
– Infosys will declare its results on Thursday, October 16, 2025.
– Wipro will declare its results on Thursday, October 16, 2025.