TCS vs Infosys vs Wipro: What Q4 results, guidance & commentaries signal
The first week on quarterly earnings saw earnings from three domestic IT majors including TCS, Wipro and Infosys- as all of them disappointed investors with a muted set of earnings.
- Apr 18, 2025,
- Updated Apr 18, 2025 12:27 PM IST
The first week on quarterly earnings saw earnings from three domestic IT majors including Tata Consultancy Services (TCS), Wipro and Infosys- as all of them disappointed investors with a muted set of earnings. Kicking-off with TCS, Infosys called it a wrap for the earnings week on Thursday, ahead of markets holiday on Friday on the account of Good Friday.
The IT solutions major reported a 6.6 per cent YoY rise in its net profit at Rs 3,588.1 crore with a 0.7 per cent increase in revenue at Rs 22,445.3 crore in the March 2025 quarter. IT services EBIT inched 0.7 per cent YoY to Rs 3,927 crore, while its EBIT margins remained flat at 17.5 per cent for the quarter. The company did not declare any dividend in the March 2025 quarter.
Wipro has delivered solid performance on large deals and margin execution. However, caution prevails due to continued growth weakness, lower ACVs, and lower discretionary spends along with macro uncertainty. A weak revenue growth guidance for 1QFY26E supports this argument, said Nirmal Bang Institutional Equities.
"To factor in the near-term weakness and weak guidance, we cut our FY26/27 US dollar revenue estimates by 3 per cent/2.4 per cent and maintain margins. While margins are improving, sustained growth recovery and large deal ramp-ups will be key to a rerating. We maintain our 'hold' rating on Wipro with a target price of Rs276," it added.
Wipro’s outlook appears challenging due to macroeconomic uncertainty and tariff policies by the US, leading clients to curb discretionary spending and delay major transformation projects. This cautious sentiment, reflected in Q1FY26 guidance, may pose headwinds to the company’s positive growth prospects in FY26, said Choice Broking.
"The company’s success hinges on leveraging its AI and consulting strengths and improving performance in key markets. Consequently, we have downgraded our rating to 'reduce' and lowered the target price to Rs 252 implying a PE of 19 times, based on FY27E EPS of Rs 13.3," it added.
The first week on quarterly earnings saw earnings from three domestic IT majors including Tata Consultancy Services (TCS), Wipro and Infosys- as all of them disappointed investors with a muted set of earnings. Kicking-off with TCS, Infosys called it a wrap for the earnings week on Thursday, ahead of markets holiday on Friday on the account of Good Friday.
The IT solutions major reported a 6.6 per cent YoY rise in its net profit at Rs 3,588.1 crore with a 0.7 per cent increase in revenue at Rs 22,445.3 crore in the March 2025 quarter. IT services EBIT inched 0.7 per cent YoY to Rs 3,927 crore, while its EBIT margins remained flat at 17.5 per cent for the quarter. The company did not declare any dividend in the March 2025 quarter.
Wipro has delivered solid performance on large deals and margin execution. However, caution prevails due to continued growth weakness, lower ACVs, and lower discretionary spends along with macro uncertainty. A weak revenue growth guidance for 1QFY26E supports this argument, said Nirmal Bang Institutional Equities.
"To factor in the near-term weakness and weak guidance, we cut our FY26/27 US dollar revenue estimates by 3 per cent/2.4 per cent and maintain margins. While margins are improving, sustained growth recovery and large deal ramp-ups will be key to a rerating. We maintain our 'hold' rating on Wipro with a target price of Rs276," it added.
Wipro’s outlook appears challenging due to macroeconomic uncertainty and tariff policies by the US, leading clients to curb discretionary spending and delay major transformation projects. This cautious sentiment, reflected in Q1FY26 guidance, may pose headwinds to the company’s positive growth prospects in FY26, said Choice Broking.
"The company’s success hinges on leveraging its AI and consulting strengths and improving performance in key markets. Consequently, we have downgraded our rating to 'reduce' and lowered the target price to Rs 252 implying a PE of 19 times, based on FY27E EPS of Rs 13.3," it added.