Lates News

Following Tata Consultancy Services' earnings release, HCL Technologies and Tech Mahindra will report their results next. Analysts note that clients remain cautious about non-essential technology projects, and industry growth is expected to stay sluggish. However, Accenture's recent results show that spending has not simply contracted but is shifting toward large-scale AI-driven transformation projects. On Thursday, Tata Consultancy Services reported profit growth that exceeded market expectations, but its revenue grew only 0.5% quarter-on-quarter in constant currency terms. Institutional firm Nuvama said: "Over the past nine months, the IT sector has significantly underperformed the broader market, mainly due to negative sentiment created by generative AI platform companies, compounded by uncertainties related to the Gulf War. We still believe that the IT services model will endure in the long term, and the disruption brought by generative AI will only create greater opportunities for these companies."