Tag: IT services

  • Infosys Q1 Net Profit Rises 12%, Appoints Ashiss Kumar Dash as Next CEO

    Infosys Q1 Net Profit Rises 12%, Appoints Ashiss Kumar Dash as Next CEO

    Infosys reported a strong start to fiscal year 2027, posting a 12.2% increase in net profit to Rs 7,769 crore for the June quarter. Revenue also grew 14% to Rs 48,211 crore, driven primarily by growth in the life sciences and financial services sectors, as well as steady performance in the US and Europe.

    Alongside the financial results, the company announced the appointment of Ashiss Kumar Dash as CEO designate. He will assume the roles of Managing Director and CEO on April 1, 2027, succeeding Salil Parekh after his second term concludes.

    Infosys also revised its FY27 revenue growth guidance downward, now expecting growth of 1.5% to 3%, as global clients remain cautious with technology spending.

    Ashiss Kumar Dash, a 30-year veteran of Infosys, currently leads several global business units. The board highlighted his extensive experience in technology, business operations, and customer management as key to driving the company’s next phase of growth.

    “Technology is entering a new era, with AI fundamentally reshaping how businesses operate and create value,” Dash said following the announcement. He emphasized Infosys’s strong AI strategy, skilled workforce, and trusted client relationships as foundations for future success.

    Salil Parekh noted that the company’s AI platform, Infosys Topaz, continues to win large client deals. Infosys secured $3.6 billion worth of large contracts during the quarter, indicating steady demand despite cautious spending. The company plans to continue investing in AI skills and digital services to support long-term growth.

  • Infosys Stock Dips After Narrowed Revenue Guidance Despite Strong Q1 Performance

    Infosys Stock Dips After Narrowed Revenue Guidance Despite Strong Q1 Performance

    Infosys shares slipped to Rs. 1,027.9 on July 24, 2026, after the IT major narrowed its FY27 revenue guidance despite posting strong first-quarter earnings. The company also announced salary hikes, plans to hire 20,000 freshers, and reaffirmed its AI-led growth strategy, but investors remained cautious about the trimmed upper end of the annual revenue forecast.

    Revenue Guidance Overshadows Solid Results

    According to TradingView, Infosys shares traded at Rs. 1,027.9, down 1.86%, with an intraday high of Rs. 1,042.6 and a low of Rs. 1,013.9. The stock decline reflects a broader concern in the IT sector: healthy execution alone may not be enough if enterprise technology spending remains cautious. The company’s FY27 revenue growth forecast on a constant currency basis narrowed from 1.5%–3.5% to 1.5%–3.0%. While the change appears small, analysts attribute it to ongoing uncertainty in global tech spending, with companies delaying discretionary investments and focusing on critical digital projects.

    Operational Resilience Despite Cautious Outlook

    Infosys reported strong financial performance for Q1. Revenue reached Rs. 48,211 crore, marking approximately 14% growth, while net income rose to Rs. 7,769 crore, driven by strong client accounts and demand for digital services. The company secured large deal wins worth about $3.6 billion, a significant portion from new business, indicating that enterprises are still committing to long-term digital transformations despite near-term caution. Additionally, Infosys expanded its AI product portfolio, fueled by increasing enterprise adoption of generative AI.

    Hiring and Salary Hikes Signal Long-Term Confidence

    Despite uneven global demand, Infosys continues to invest in its workforce. The company confirmed that annual salary hikes will begin rolling out from October, with senior employees receiving increments in January. It also reaffirmed plans to recruit nearly 20,000 fresh graduates during FY27. Rather than slowing hiring, Infosys is building capabilities in high-growth areas like artificial intelligence, cloud computing, cybersecurity, and digital engineering, signaling management’s expectation that technology spending will improve over the medium term.

    Leadership Transition and AI Strategy

    Infosys appointed Ashiss Kumar Dash as the future CEO, with the transition scheduled for April 2027. This planned leadership change is expected to ensure continuity and maintain client trust during a period of industry upheaval driven by AI. The company’s AI and automation services, including generative AI, intelligent automation, cloud migration, and digital consulting, are expected to drive higher-value deals as enterprises move from proof-of-concept to large-scale deployment. However, the pace of monetization will depend on the recovery of IT budgets.

    Market Outlook

    Infosys Q1 performance reflects the evolving priorities of the global IT services industry. While profitability, strong deal wins, continued hiring, and AI investment demonstrate resilience, the reduced revenue outlook highlights that client spending remains prudent. Investors should monitor whether enterprise technology budgets recover in coming quarters and whether AI-driven initiatives begin to contribute meaningfully to revenue. Until then, Infosys appears operationally sound but operates in an environment where expectations are as critical as execution.

  • Infosys Q1 Earnings: AI Revenue Reaches 8.2% as Net Profit Hits $820 Million

    Infosys Q1 Earnings: AI Revenue Reaches 8.2% as Net Profit Hits $820 Million

    Infosys (NSE, BSE, NYSE: INFY), a global leader in AI-first business consulting and technology services, reported its Q1 results for the period ending June 30, 2026. The company posted revenues of $5,082 million, representing year-over-year growth of 2.4% and sequential growth of 1.0% in constant currency. Operating margin stood at 21.1%, a sequential increase of 0.2%, while earnings per share grew 14.9% year-on-year in rupee terms. Net profit climbed to $820 million, and free cash flow reached $955 million, with a conversion rate of 116.5% of net profit.

    AI revenues accounted for 8.2% of total revenue in Q1, highlighting the rapid conversion of AI momentum into tangible financial results. The company secured large deal wins totaling $3.6 billion in total contract value, with 61% coming from net new business.

    “AI momentum is now rapidly converting into revenue, which demonstrates how Infosys’ differentiated enterprise AI value proposition is translating into consistent market share gains. Strong large deal wins, powered by Infosys Topaz, reinforce client confidence in our ability to be the strategic partner of choice for AI transformation driving tangible business value,” said Salil Parekh, CEO and MD.

    Infosys revised its FY27 revenue growth guidance to 1.5%-3.0% in constant currency and retained its operating margin guidance at 20%-22%.

    Key Financial Highlights (Q1 FY27)

    • Revenues in constant currency: +2.4% YoY, +1.0% QoQ
    • Reported revenues: $5,082 million (+2.8% YoY, +0.8% QoQ)
    • Operating margin: 21.1% (+0.3% YoY, +0.2% QoQ)
    • Basic EPS: $0.20 (+3.7% YoY)
    • Free cash flow: $955 million (FCF conversion: 116.5%)

    “Our resilient margins of 21.1% and consistent strong cash generation reflect the strength of our business model, disciplined execution and continued focus on operational excellence in a challenging business environment,” said Jayesh Sanghrajka, CFO.

    Major Client Wins and Partnerships

    Infosys announced several strategic collaborations and renewals during the quarter:

    • Mercedes-Benz Group AG: Renewed a long-standing partnership to move one of the automotive sector’s largest hybrid cloud and data center operations to an AI-led operating model, leveraging Infosys Topaz and Infosys Cobalt.
    • Nokia: Collaboration to strengthen product engineering capabilities across core networks, accelerating innovation and execution efficiency.
    • Bendigo Bank: A seven-year collaboration to build a future-ready bank, enhancing digital experiences for 2.9 million customers.
    • DNB Bank ASA: Expanded collaboration to modernize financial crime operations using NICE Actimize’s X Sight Enterprise platform.
    • Sentara: Collaboration to scale enterprise AI adoption in healthcare services.
    • GlobalFoundries: Expanded collaboration to accelerate AI-driven IT operations transformation.
    • Spark New Zealand: Accelerating AI-led transformation across technology delivery and digital operations with Infosys Topaz.
    • Cox Communications: Modernization of technology operations to enhance digital customer experiences.
    • Ventura Foods: Enterprise transformation using Oracle Fusion Cloud and Infosys Topaz for an AI-first value chain strategy.
    • OpenAI: Collaboration to accelerate enterprise AI transformation, focusing on deploying Codex for large-scale software modernization and automation.
    • Harness: Partnership to unlock AI value for enterprise transformation, addressing the “AI Velocity Paradox.”
    • Finacle Deals: Sterling Bank of Asia (enhancing employee and customer experience), Bank of Sydney (successful go-live of Finacle Digital Banking Suite on AWS).

    Industry Recognitions and Awards

    Infosys received multiple accolades in Q1, including ranking #1 on LinkedIn Top Companies in India for 2026, being recognized as a Leader in Gartner Magic Quadrant for Cloud ERP Services, and winning the Bronze Stevie Award for Innovation in Investor Relations. Infosys Finacle was rated a Leader in The Forrester Wave for Digital Banking Engagement Platforms and ranked #1 in 22 categories by IBS Intelligence.

    For a full list of awards and recognitions, visit the official Infosys newsroom.

  • Wipro Lowers Utilization to Build Capacity, Maintains AI Hiring Focus Despite Soft Demand

    Wipro Lowers Utilization to Build Capacity, Maintains AI Hiring Focus Despite Soft Demand

    Wipro has deliberately reduced employee utilization to create capacity for upcoming client engagements, even as the company continues to hire in close alignment with business demand. The strategy is aimed at ensuring the IT services firm has enough workforce ready to execute deals already in the pipeline.

    Speaking after the company’s June quarter results, Chief Financial Officer Aparna Iyer said the lower utilization was a planned move rather than a sign of weaker execution.

    “If you look at utilization year on year, we have decreased our utilization to invest in some of the deals that we’re looking at,” Iyer said. “That will also go up through the year. That will also be a lever.”

    Margins Depend on AI Investments

    Iyer said utilization would remain one of the company’s key margin levers over the coming quarters, alongside productivity gains from fixed-price projects, pyramid optimization, and tighter control over administrative expenses.

    She noted that Wipro’s operating margin has improved steadily over the past eight quarters, rising from nearly 15% to the 17-17.5% range. However, she said sustaining or improving those levels would depend on how much the company invests in artificial intelligence capabilities.

    Hiring to Remain Demand-Driven

    Chief Human Resources Officer Saurabh Govil said Wipro is not planning aggressive hiring despite a modest increase in headcount during the June quarter. Recruitment will continue to mirror client demand, while productivity improvements are expected to offset the need for significant workforce expansion.

    “Our overall headcount and hiring will be linked more to the demand environment, which is right now a bit muted,” Govil said. “But I don’t see a headcount going up drastically. I see that the gains of productivity, which we’re talking about, will have a play as we move forward.”

    Govil added that the company is balancing investments in upskilling existing employees with the hiring of specialized AI talent, which remains expensive.

    “Some of the AI skills are rare, so they are coming at a premium. So all forces are in play. We’ll have to invest, grow, and make sure we maintain our margins.”

    Headcount Rises, Bookings Remain Strong

    Wipro added 888 employees during the June quarter, taking its total workforce to 2.43 lakh from 2.42 lakh in the previous quarter. Attrition edged up slightly to 13.9% from 13.8%.

    The company reported a 0.9% year-on-year increase in quarterly revenue, while operating margins declined by 120 basis points due to a client-specific deal and continued investments in AI. Wipro also secured $3.3 billion in bookings during the quarter, including 13 large deals valued at $1.6 billion.

  • Wipro Reports Q1 FY2027 Results: IT Services Revenue Grows 0.9% YoY, Large Deal Bookings Jump 12.9% QoQ

    Wipro Reports Q1 FY2027 Results: IT Services Revenue Grows 0.9% YoY, Large Deal Bookings Jump 12.9% QoQ

    Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading AI-powered technology services and consulting company, announced its financial results for the first quarter ended June 30, 2026. The company reported a 0.9% year-over-year increase in IT services revenue on a constant currency basis, with large deal bookings surging 12.9% quarter-over-quarter to $1.6 billion.

    Key Financial Highlights

    • Gross revenue: ₹244.8 billion ($2,585.9 million), up 1.0% QoQ and 10.6% YoY.
    • IT services revenue: $2,614.5 million, down 1.4% QoQ but up 1.0% YoY; non-GAAP constant currency growth of 0.9% YoY.
    • Total bookings: $3,370 million, down 2.4% QoQ in constant currency.
    • Large deal bookings: $1,626 million, up 12.9% QoQ in constant currency, including 13 large deals.
    • IT services operating margin: 16.0%, down 1.3% QoQ and 1.2% YoY.
    • Net income: ₹33.6 billion ($354.6 million), down 4.7% QoQ but up 0.6% YoY.
    • Earnings per share: ₹3.20 ($0.031), down 4.2% QoQ but up 0.6% YoY.
    • Operating cash flow: ₹32.9 billion ($348 million), at 98% of net income, up 3.6% QoQ.
    • Voluntary attrition: 13.9% on a trailing 12-month basis.
    • Interim dividend: Declared ₹2 ($0.021) per equity share/ADS.

    Management Commentary

    Srini Pallia, CEO and Managing Director, said, “Clients are moving beyond technology modernization to AI-enabled operating models that improve quality, resilience, and productivity. Wipro’s consulting-led, AI-powered approach helps clients embed AI at the core of their business, and these engagements reflect both the breadth of our capabilities and the trust clients place in us as a transformation partner.”

    Aparna Iyer, Chief Financial Officer, added, “As we navigate an evolving technology landscape, we remain focused on investing in our people and strategic priority areas. While these investments may create some near-term margin volatility, it sets a strong foundation for future growth. Cash flow remained robust, with operating cash flow at 98% of net income for the quarter. We are also pleased to share that the Board has declared an interim dividend of ₹2 per share. Including this dividend and payouts made over the past year, we would have returned more than $3 billion in cash to our shareholders while continuing to invest steadily for growth.”

    Strategic Deal Wins

    Wipro secured multiple large and strategic deals during the quarter across industries. Key wins include:

    • A global chemicals company selected Wipro for a multi-year IT modernization deal, leveraging AI and GenAI for automation and cost optimization.
    • A major US technology company renewed its engagement for geospatial data operations, using AI-powered global delivery.
    • A US health insurer extended its digital workplace support contract with AI-infused service delivery.
    • A leading Australian health and community services provider chose Wipro to modernize its technology landscape.
    • Capco, a Wipro company, secured engagements with a global energy company and a US housing finance institution for data modernization and program execution.

    Analyst Recognition

    Wipro was recognized as a Leader in several industry reports, including ISG Provider Lens for Semiconductor Services, Avasant RadarView for Banking and High-Tech Digital Services, and Everest Group’s Healthcare Payer Digital Services PEAK Matrix® Assessment.

    Outlook for Q2 FY2027

    For the quarter ending September 30, 2026, Wipro expects IT services revenue in the range of $2,574 million to $2,627 million, translating to sequential guidance of (-)1.5% to (+)0.5% in constant currency terms.

  • Wipro Shares Rise 1.65% Ahead of Q1 FY27 Results: Revenue Guidance and AI Strategy in Focus

    Wipro Shares Rise 1.65% Ahead of Q1 FY27 Results: Revenue Guidance and AI Strategy in Focus

    Wipro shares climbed 1.65% to Rs. 177.39 on the NSE as investors awaited the company’s Q1 FY27 earnings announcement scheduled after market hours on July 16. The stock touched an intraday high of Rs. 180.79 and a low of Rs. 176.29, reflecting cautious optimism ahead of the results.

    India’s fourth-largest IT services company is expected to report another subdued quarter, with analysts forecasting muted sequential revenue and profit growth amid continued weakness in discretionary technology spending. While the June quarter numbers are unlikely to surprise the Street, the management’s outlook on artificial intelligence (AI), client spending, large deal momentum, and revenue guidance for the September quarter is expected to determine investor sentiment.

    June Quarter Likely to Reflect Cautious Spending

    Brokerage estimates place Wipro’s consolidated revenue for Q1 FY27 at Rs. 24,850 crore to Rs. 25,350 crore, indicating high double-digit year-on-year growth. However, sequential growth is expected to be minimal as firms defer technology spending amid uncertain macroeconomic conditions. Currency appreciation could provide some lift to revenue figures, but demand remains weak in overseas geographies, according to analysts.

    Margins May Face Temporary Pressure

    The bottom line is projected to come under continued strain due to Wipro’s investments in artificial intelligence, salary increases, and expenses tied to recently signed large deals. Despite these challenges, market experts expect the company to sustain stable margins through cost control measures. Analysts will closely monitor any management commentary regarding margin improvement in the remaining period of fiscal year 27.

    Guidance Will Be the Biggest Market Trigger

    The Street believes Wipro’s September quarter guidance will carry greater significance than its reported June quarter numbers. Technology budgets in both North America and Europe remain very prudent, with emphasis on savings over digital transformation plans. An improvement in discretionary spending would be a major positive for investors. Conversely, a more cautious stance might confirm doubts about further recovery in the IT services industry.

    AI Remains the Long-Term Growth Story

    Artificial intelligence continues to be a major talking point within the global technology services sector, and Wipro is expected to provide insight into its AI plans during the quarterly earnings call. Analysts and investors will be keen to see signs that pilot AI deals are moving toward larger projects that can generate future revenue. Generative AI adoption and consulting demand will come under intense scrutiny.

    What Investors Will Monitor

    • Estimated Revenue Drivers: Currency benefits, acquisition contributions, and large deal wins.
    • Large Deals and BFSI Outlook: BFSI (banking, financial services, and insurance) remains a major revenue contributor. Large deal signings will be closely watched as they provide visibility into future growth.
    • Dividend Decision: Wipro’s board is expected to consider an interim dividend alongside the results, which will attract investor attention.

    Market Outlook

    Wipro’s June quarter is not expected to show significant performance, with growth likely flat due to global uncertainty and cautious technology investments. However, the results alone are not the main focus. The outlook and commentary from management regarding AI opportunities, client spending, large deals, and the September quarter guidance will be the key drivers for investor sentiment.

  • Top Cloud Computing Stocks to Watch in India

    Top Cloud Computing Stocks to Watch in India

    India’s cloud computing sector is rapidly expanding, driven by digital transformation across industries. Here are the leading Indian IT companies offering robust cloud services and solutions.

    Tata Consultancy Services (TCS) – A global IT leader providing enterprise cloud migration, infrastructure management, and digital transformation services across multiple industries and international markets.

    Infosys – Strong cloud capabilities through strategic partnerships, helping businesses modernize infrastructure, improve scalability, and accelerate digital transformation initiatives worldwide.

    HCLTech – A leading cloud services provider specializing in hybrid cloud, cybersecurity, application modernization, and enterprise digital transformation for global clients across sectors.

    Wipro – Expands cloud consulting and managed services through strategic collaborations with major cloud providers, supporting enterprises undergoing digital modernization successfully worldwide.

    Tech Mahindra – Offers cloud transformation, AI integration, and enterprise technology services, helping organizations improve efficiency, agility, and customer experience across industries globally.

    LTIMindtree – Delivers cloud migration, analytics, AI solutions, and managed services, enabling businesses to modernize operations and optimize digital infrastructure effectively worldwide.

    Mphasis – Focuses on cloud-native application development, migration services, automation, and financial technology solutions for enterprise customers across international markets.

    Persistent Systems – Provides cloud engineering, software development, AI integration, and digital platform services, supporting businesses embracing next-generation technology solutions globally.

    Coforge – Expands cloud transformation services across banking, insurance, aviation, and healthcare sectors, helping enterprises accelerate innovation and operational efficiency through technology.

  • HCLTech Lands $1.14B European Mega-Deal, Ending Three-Year Drought in Large Outsourcing Contracts

    HCLTech Lands $1.14B European Mega-Deal, Ending Three-Year Drought in Large Outsourcing Contracts

    HCLTech has secured a landmark $1.14 billion contract from a Europe-based Fortune Global 50 client, marking its first mega-deal in over three years. The agreement, announced on July 3, 2026, underscores a resurgence in large-scale outsourcing contracts driven by demand for AI-powered digital transformation.

    Deal Details and Revenue Impact

    The multi-year partnership will see HCLTech establish an AI-driven operating model to manage the client’s global digital workplace and enterprise networks. The contract guarantees annual revenue of approximately $228 million, contributing about 1.6% growth in FY27. HCLTech expects constant currency growth of 1% to 4% for the fiscal year, slightly down from the 2-5% range projected in April 2025.

    Strategic Significance

    This deal ends a three-year hiatus in mega-deals for HCLTech, the last being a $2.1 billion managed services contract with Verizon in August 2023. The company also acquired a 10% stake in Bengaluru-based AI startup Sarvam AI for about $150 million in June 2026, becoming the first Indian IT services firm to invest directly in an AI company.

    Phil Fersht, CEO of HFS Research, commented: “The deal also strengthens HCLTech’s credibility in large-scale competitive pursuits at a time when enterprises are consolidating strategic technology partners.”

    Context in Indian IT Sector

    The contract is the fourth mega-deal secured by Indian IT firms since January 2024, following Infosys’s $1.6 billion NHS deal, TCS’s $1 billion Telefónica UK contract, and TCS’s $2.5 billion Aviva deal. HCLTech ended fiscal 2025 with $14.66 billion in revenue, up 6% year-over-year, making it the fastest-growing among the top five Indian IT services companies.

    The deal is extendable by five years and reinforces India’s reputation as a global hub for enterprise technology services and AI-led innovation.

  • Persistent Systems Acquires Nagarro for $1.3 Billion in Landmark AI-Led Digital Engineering Deal

    Persistent Systems Acquires Nagarro for $1.3 Billion in Landmark AI-Led Digital Engineering Deal

    Persistent Systems has announced its largest-ever acquisition, agreeing to buy Germany-based digital engineering firm Nagarro for $1.3 billion in an all-cash deal. The transaction positions the combined entity as a $2.9 billion AI-led digital engineering powerhouse with a significantly expanded global footprint and enhanced enterprise capabilities.

    The company has offered €81 per share for all outstanding Nagarro shares, representing a premium of approximately 140% over Nagarro’s undisturbed closing price on June 25 and around 94% over its three-month volume-weighted average price.

    Creating a $2.9 Billion Technology Company

    The acquisition will combine Persistent’s strengths in artificial intelligence, cloud computing, and software engineering with Nagarro’s expertise in digital engineering, enterprise resource planning (ERP), and customer experience. The Persistent-Nagarro Group is projected to generate annual revenues exceeding $2.8 billion and employ over 46,000 people across more than 40 countries.

    This deal significantly boosts Persistent’s presence in Europe, where it currently generates only 9% of its revenue. Post-acquisition, the European contribution is expected to rise to 22%.

    Industry experts view the acquisition as a strategic move into AI-driven business transformation. Nagarro brings deep expertise in AI, digital engineering, ERP, cloud computing, and customer experience, with strong relationships in manufacturing, banking, healthcare, telecom, and consumer sectors.

    Regulatory Process Underway

    Persistent has already secured a commitment from Nagarro’s largest shareholder, which holds nearly 21% of the company. To close the deal, Persistent must obtain acceptance from at least 51% of Nagarro’s shareholders and receive regulatory approval from Germany’s BaFin. The transaction is expected to close during the fourth quarter of 2026 or the first quarter of 2027.

    Following completion, Persistent plans to delist Nagarro from the Frankfurt Stock Exchange. Together, the combined companies will serve more than 350 enterprise clients and address a total addressable market exceeding $1.4 trillion.