Infosys Ltd on Thursday joined peers Tata Consultancy Services and Wipro Ltd in reporting disappointing earnings amid jitters in their key markets, signalling a potential hiring slowdown across the sector this year.India’s second biggest IT services company missed its revenue growth target for FY25 and slipped on profit, despite besting analyst estimates on both fronts. Infosys also projected its slowest growth for the fiscal at the start of the year in a decade.The company ended FY25 with $19.28 billion in revenue, beating a Bloomberg poll estimate of $19.16 billion. But its 4.2% year-on-year revenue growth in constant currency terms (not taking currency fluctuations into account) missed its goal of 4.5-5% outlined in January 2025.It also projected flat to 3% revenue growth for FY26 in constant currency terms, its weakest guidance since April 2009, when it had projected a revenue decline of 6.7-3.1% for FY10.Mirror imageThe company’s performance and commentary echo those of TCS and Wipro, India’s largest and fourth-largest IT services companies. The two companies said earlier this week that clients had slowed decision-making and paused projects owing to the hazy macroeconomic environment.Like TCS and Wipro, Infosys too avoided mention of hiring targets, with the management adopting a wait-and-watch approach. Headcount is a key determinant of the overall demand environment in the IT industry. Caution in hiring spells bad news for nearly 1.5 million students graduating from India’s engineering colleges every year.Also read | Infosys started the year strong, but will the end pack a punch?Infosys also followed TCS and Wipro in report a sequential decline in its fourth quarter revenue.Wipro, like Infosys, also expects to grow its revenue at its slowest pace in the first three months of FY26. The company has already outlined a quarterly revenue decline between 3.5% and 1.5% in constant currency terms. Wipro gives guidance for the following quarter, whereas Infosys gives guidance for the full year. TCS does not give quarterly or yearly growth guidance.IT’s uncetaintiesInfosys’s commentary factored in macroeconomic uncertainty, much like peers.“At the bottom end of the guidance, we have baked in some deterioration in the environment, some heightened uncertainties,” said Jayesh Sanghrajka, chief financial officer of Infosys, in the company’s post-earnings media briefing on Thursday.CEO Salil Parekh, though, said clients have not paused and things could change quickly. “Things can change in a short period in terms of what can happen with the economic outlook,” said Parekh in the media briefing.The gloomy outlook from three of the country’s big four IT service providers stems from the tariff war unleashed by US President Donald Trump and consequent uncertainties. 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Infosys falls short of its growth predictions, projecting the slowest beginning to the fiscal year.
