Top IT firms face FY26 test amid growth, AI, visa pains

The Big Five IT services companies had their weakest year in recent memory in FY25

- Jas Bardia

Behind the cautious outlook sounded by the top five IT services companies over the past two weeks, there is a deeper concern, on whether fiscal year 2026 (FY26) will indeed be better than the previous fiscal.

The Big Five had their weakest year in recent memory in FY25, with two reporting revenue declines and overall growth not exceeding 4.5%. Much of this was because of fewer mega deals, low demand for IT work, and geopolitical tensions prompting clients to go slow on IT spending.

Of the five, Infosys and HCL Technologies have grown their revenue in the first six months of FY26 year-on-year. Tech Mahindra’s revenue growth has been flat, whereas Tata Consultancy Services (TCS) and Wipro have lost business in the same period.

Second-largest Infosys’s 4.26% dollar revenue growth in H1 2025 was faster than the 2.92% growth in H1 of FY25. But third-largest HCLTech’s revenue growth slowed from 5.98% in the first half of FY25 to 5.58% this year, although it still recorded the highest growth among its peers.