Infosys bets on turnaround, as TCS, Wipro tread with caution

The company is reasonably confident of meeting its FY2026E outlook, according to analysts

- Jas Bardia

Infosys Ltd has become the first major Indian IT services company to express confidence in a turnaround, even as peers such as Tata Consultancy Services Ltd (TCS) and Wipro Ltd adopt a cautious stance amid macroeconomic uncertainty and Gen AI disruptions.

In a conversation with Kotak Institutional Equities analysts, Infosys chief executive Salil Parekh said tech spending is likely to improve. This comes after US President Donald Trump's tariff flip-flops have put client spending in limbo.

"Tech spending is likely to improve with lower macro uncertainty in developed markets," said Kotak Institutional Equities analysts Kawaljeet Saluja, Sathishkumar S., and Vamshi Krishna, in a note dated 19 August.

Infosys gets more than three-fourths of its business from developed markets, including the US and Europe.

Most of Infosys's growth is driven by its financial services vertical, which makes up a little more than a fourth of its revenue.

The brokerage also noted that the country's second-largest IT outsourcer is confident of meeting its FY26 guidance.

"The company is reasonably confident of meeting its FY2026E outlook," Kotak analysts added, citing resumed transformation programmes and easing trade uncertainties.