TCS, Infosys, HCLTech and Wipro report mixed Q2 results

Revenue growth and guidance revisions across major IT firms

Infosys reported sequential constant-currency revenue growth of 1.2%, up from 1% in the June quarter. The company lowered its fiscal year 2027 revenue growth guidance to 1%-2% from 1.5%-3%. This revision resulted from weakness in discretionary spending, softer volumes, and pricing pressure.

TCS recorded constant-currency revenue growth of 0.5%, with international revenue growing 1.2% sequentially. Wipro reported flat constant-currency revenue growth, which was an improvement from the 1.2% sequential decline in the previous quarter.

HCLTech narrowed its fiscal year 2027 revenue growth guidance to 2.5%-4% from 1%-4%. The company also revised its services revenue growth guidance to 3%-4% from 1.5%-4.5% while maintaining its EBIT margin guidance at 17.5%-18.5%.

Wipro expects its IT services revenue for the December quarter to range between a 1.5% decline and 0.5% growth in constant-currency terms. The company cited seasonal weakness as the primary factor for this outlook. Infosys maintained its operating margin guidance despite the lower revenue growth forecast.

Workforce expansion and attrition rates in Q2

TCS, HCLTech, and Infosys increased their staff numbers during the second quarter. TCS added 4,258 employees, marking its third consecutive quarter of growth and reaching a total headcount of 598,056. Infosys reported a net increase of 4,000 employees, bringing its total workforce to approximately 3.33 lakh from 3.28 lakh in the first quarter.

HCLTech recorded net employee additions of 6,450, which reversed a net reduction of 3,292 in the previous quarter. In contrast, Wipro saw its headcount fall by 6,716 sequentially to 236,328. Wipro hired around 1,000 freshers in the first half of the year and plans to recruit 7,500 freshers in the second half.

Infosys saw its attrition rate ease to 12.7% from 13% in the previous quarter. HCLTech reported its attrition rate edged up to 12.8% from 12.7%. TCS maintained its last-12-month attrition in IT services at 13.3%. Wipro recorded an attrition rate of 13.8%, a slight decrease from 13.9%.

AI revenue growth and strategic adoption across IT majors

Artificial intelligence remains a central growth theme for all four companies, though reported metrics differ and should not be treated as directly comparable. These metrics use different definitions and reporting periods, preventing a like-for-like ranking of the overall AI businesses.

TCS leads the group on absolute annualised AI revenue, reporting $3.1 billion, which accounts for over 10% of its total revenue. The company said clients are increasingly adopting an AI-plus-human approach, noting that AI-related revenue carries higher margins than its overall business.

Infosys recorded AI revenue of $540 million in the second quarter, a 29% sequential increase from $417 million in the first quarter. This figure accounted for 10.5% of the company's total revenue. Management said several AI projects are progressing well, but acknowledged that the technology is also causing compression in traditional services revenue.

HCLTech saw its advanced AI revenue rise 28.4% sequentially in constant-currency terms to $219 million from $171 million in the first quarter. Management said this higher-margin business is contributing to profitability and the firm intends to reinvest those gains to strengthen its position in AI.

Wipro is currently observing clients focus on cost optimisation, legacy modernisation, and scaling agentic AI. CEO Srini Pallia said investments in AI services are helping the company pursue opportunities beyond traditional technology spending, with growth emerging across AI model systems.

Deal win momentum and project delays impact quarterly performance

TCS led the sector in absolute value regarding deal momentum, while Infosys and HCLTech delivered stronger sequential performances. Wipro faced concerns regarding lower large-deal bookings and delayed deal closures.

Wipro CFO Aparna C. Iyer said some deals expected to close in the September quarter were delayed and are now expected to flow through in the December quarter.