TCS, Wipro, and other IT stocks will be in focus on Friday due to second-quarter earnings and a US certification programme suspension. TCS reported a 15% profit growth, but the US Labor Department stopped processing new applications for major firms. Meanwhile, OpenAI missed its revenue run rate forecast for September.
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Shares of information technology companies such as TCS, Infosys, HCLTech, Wipro, and other IT stocks will be in focus on Friday due to a confluence of factors ranging from second-quarter earnings to the US suspending a certification programme.
The developments come at a time when market sentiment has been significantly hampered by soaring oil prices, an interest rate hike cycle, rising yields, and a sharp FII selloff.
Here are key reasons for IT stocks to be in focus
1.) TCS Q2 results: India’s largest IT services company reported a 15% year-on-year (YoY) growth in its consolidated net profit at Rs 13,884 crore for the second quarter. The same stood at Rs 12,075 crore a year ago. The board has declared a second interim dividend of Rs 12 per share for the financial year 2026-27.
In constant currency terms, revenue rose 0.5% quarter-on-quarter. Operating margin came in at 24%, while net margin stood at 19%.
CEO and MD K Krithivasan said the company saw broad-based growth across international markets and most industry segments. He said the Porsche and Best Buy deals represent a new category of transformation partnerships and that TCS is building repeatable platforms with clients to industrialise AI at scale.
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2.) PERMs suspended: The US Labor Department on Thursday announced the suspension of Microsoft and Adobe from the Permanent Labor Certification Program, citing multiple ongoing federal investigations involving the companies, according to US Labor Secretary Keith Sonderling.
The department also said it would stop accepting or processing new applications from Cognizant, Infosys, Capgemini, Wipro, TCS, and HCLTech. Sonderling said these companies had sought nearly three million foreign workers since 2009, securing more than 230,000 H-1B visa approvals and over 100,000 permanent labor certifications.
In response, IT industry body NASSCOM said Indian IT companies had substantially reduced their reliance on H-1B visas while steadily increasing local hiring to strengthen their workforce in the US.
3.) OpenAI misses revenue run rate forecast: OpenAI told investors that its annualised revenue for September was nearly $50 billion, lower than the figure it had indicated earlier, Reuters reported. The company had previously told investors at a separate event that its revenue run rate for September was approaching $70 billion.
The discrepancy largely stemmed from an effort to make a direct comparison with revenue figures from rival Anthropic, the Reuters report added.
OpenAI’s revenue disclosure could benefit Indian IT firms by highlighting the growing demand for AI services, implementation, and enterprise integration. As global AI companies expand, Indian IT players could secure more contracts to help businesses deploy AI tools, modernise systems, and manage costs. However, the opportunity will depend on how effectively they adapt their offerings and convert AI demand into sustainable revenue growth. OpenAI’s lower-than-previously-indicated revenue run rate could ease concerns that AI companies are growing rapidly enough to disrupt traditional IT services.
Infosys and Wipro US-listed ADRs recovered from day lows to end flat-to-positive overnight.
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(You can now subscribe to our ETMarkets WhatsApp channel)
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price