TCS Tops Q2 Deal Wins at $9.6 Billion, Infosys Sees Growth
In the latest quarterly results, TCS leads in deal wins while Infosys shows strong growth despite lowering revenue guidance.
TCS secured $9.6 billion in deal wins, leading the sector.
HCLTech achieved the highest revenue growth at 2.3% sequentially.
Infosys cut its FY27 revenue forecast to 1%-2% amid cautious spending.
In the second quarter of FY27, Tata Consultancy Services (TCS) emerged as the leader in deal wins, securing contracts worth $9.6 billion. This figure slightly surpassed the previous quarter's $9.5 billion but fell short of the anticipated $10 billion. Infosys also reported a significant increase in deal wins, totaling $5.2 billion, up from $3.6 billion in the first quarter, indicating a robust demand for its services despite a downward revision in its revenue guidance.
HCLTech distinguished itself with the highest sequential revenue growth among the four major IT firms, achieving a 2.3% increase. This recovery comes after a 0.5% decline in the previous quarter. TCS reported a modest constant-currency revenue growth of 0.5%, while Infosys managed a 1.2% increase. Wipro, however, faced challenges, reporting flat revenue growth and a decline in total bookings.
The contrasting forecasts from these companies reflect varying market conditions. HCLTech raised its FY27 revenue growth outlook to between 2.5% and 4%, while Infosys lowered its expectations to 1%-2%, citing reduced discretionary spending among clients. Wipro's outlook remains cautious, projecting a potential decline in IT services revenue for the upcoming quarter.
In terms of hiring, HCLTech reported a net addition of 6,450 employees, reversing previous reductions, while TCS added 4,258 employees, marking its third consecutive quarter of growth. Infosys increased its workforce by 4,000, whereas Wipro saw a decline of 6,716 employees, highlighting the contrasting trends in workforce management among these companies.
Artificial intelligence (AI) continues to be a focal point for growth. TCS reported annualized AI revenue of $3.1 billion, while Infosys noted a 29% sequential increase in AI revenue to $540 million. HCLTech's AI revenue also grew significantly, indicating a strong market focus on AI-driven solutions. As these companies navigate a cautious economic landscape, their strategies in AI and workforce management will be critical for future growth.
