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IT’s Q2 earnings enmeshed in fog
October 06, 2025
|Mint Bangalore
On weak footing
IT companies are expected to see modest sequential revenue growth in Q2 FY26. The second quarter is usually strong, but as of now, IT investors are driving through the fog. Tariff-induced uncertainties hindered the revenue growth of technology companies in QI FY26. Cut to now, the demand environment, although not deteriorating, remains uncertain. Clients are still cautious about the use of discretionary technology spending. Additionally, the recent hike in the H-1B visa fee and the proposed Halting International Relocation of Employment (HIRE) Bill have fuelled concerns about rising protectionism in US-a key market for IT companies. Rising protectionism could lead to higher operating costs and increased competition for Indian IT companies.
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