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IT sector Q3 results review: What TCS, Infosys, Wipro, Tech Mahindra earnings signal?

January 17, 2026

IT sector Q3 results review: Major Indian IT services companies have reported December quarter (Q3) earnings slightly above expectations, fanning hopes that the worst for the sector may be behind, though it may still be early to discount the impact of global uncertainties and the AI factor. Most of them reported a decline in profits due to the one-time impact of the new labour codes. However, revenue trends, guidance, and management commentaries indicated green shoots are emerging in the sector.

IT sector Q3 results review: What TCS, Infosys, Wipro, Tech Mahindra earnings signal?

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Key Highlights

Tech Mahindra, for instance, reported a positive surprise this quarter, particularly on deal wins and margins.
TCS reported a nearly 14% year-on-year (YoY) fall in its consolidated profit to ₹10,657 crore, impacted by a one-time charge of ₹2,128 crore due to the implementation of new labour laws.
Its revenue from operations for the quarter, however, rose nearly 5% YoY to ₹67,087 crore Infosys reported a 2.2% YoY drop in consolidated profit at ₹6,654 crore for Q3FY26 after the impact of ₹1,289 crore on its earnings due to the new labour codes.
However, consolidated revenue during the quarter rose 8.9% YoY to ₹45,479 crore.
Infosys slightly increased its revenue growth estimates for FY26 to 3-3.5% in constant currency compared to 2-3 per cent estimated earlier.

Sources

IT sector Q3 results review: What TCS, Infosys, Wipro, Tech Mahindra earnings signal?

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