IT results are out, and they're a mixed bag
India's top IT companies just posted their July-September 2024 numbers, and the results are a mixed bag.
Infosys reported an 8.5% increase in revenue year-on-year, but Wipro reported marginal growth in revenue and profit year-on-year—highlighting how the whole tech sector is still feeling cautious with global demand staying weak.
Both companies still playing it safe with their outlooks
If you're following tech or thinking about a career in IT, this shows the industry isn't out of the woods yet.
Infosys narrowed its growth forecast for FY25 to 2-3% from 1-3%, but investors weren't impressed—shares actually dropped.
Wipro's marginal revenue growth underlines how uneven the recovery is, and both companies are still playing it safe with their outlooks.
Why the tech sector is still feeling cautious
Big global clients, especially financial services clients (which make up nearly 28% of Infosys's business), are cutting back on tech spending and focusing on efficiency.
Plus, there's uncertainty over things like H-1B visa rules and outsourcing taxes.
There are some signs of improvement for Infosys, but overall, the sector's still waiting for a real comeback—and investors are holding back until they see it.