Cautious narrative, sobering outlook: Top IT companies’ results trail expectations amid tariff woes

TCS, Infosys and Wipro disappointed with their March quarter and full year FY25 scorecards on multiple counts.

India's top-rung IT services companies TCS, Infosys and Wipro disappointed with their March quarter and full year FY25 scorecards on multiple counts and collectively signalled heightened caution up ahead, as macro-uncertainties compounded by global trade woes eroded sentiments and weighed on business outlook.

The overhang of macro concerns reflected on several fronts, from muted outlook to hesitation to commit upfront on wage hikes, as management commentary from India's billion-dollar IT powerhouses remained largely sobering in the just-ended quarter.

Hiring trends fared a tad better. TCS, Infosys, and Wipro cumulatively added 1,438 employees between Q3 and Q4 FY25, marking a shift, and indeed a reversal, from declines of over 900 seen in the previous quarter.

With US tariff posturing swiftly resetting global trade dynamics, the tone of business commentary in Q4 was punctuated with references to underlying uncertainties and caution.

"The global industry environment remained uncertain for most of the year and the recent tariff announcements have only added to that... Even though the underlying demand for tech reinvention remains strong, clients are approaching it more cautiously," Wipro CEO and Managing Director Srinivas Pallia said during the recent earnings' conference.

Market watchers say the industry is navigating a complex landscape, balancing growth ambitions with strategic caution. Attention will now turn to other IT companies that are slated to announce their results in the coming days.

For now, the US-induced tariff shocks and President Donald Trump's shifting trade policies have dashed any hopes of a recovery, and its overhang is visible on subdued financial metrics, and outlook within industry and beyond.