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IT Giants Shrink Workforce Amidst Revenue Woes
24 Jul
Summary
- Infosys revenue grew 1% q-o-q in constant currency.
- AI revenue accounted for 8.2% of Infosys' income.
- All three IT firms reduced their employee count q-o-q.
In the June 2026 quarter, Infosys recorded a modest 1% year-on-year revenue growth in constant currency, reaching Rs 48,211 crore. This sluggish performance was partly due to softer contributions from its financial services and communication verticals.
A significant aspect of Infosys' results was the 8.2% of its revenue derived from AI-related activities, though a comparative figure was not provided. This highlights the growing importance of AI in the IT sector.
In contrast, Tech Mahindra reported a more robust 2.6% revenue growth q-o-q in constant currency, boosted by strong performance in manufacturing and BFSI segments. HCL Tech, however, saw a slight 0.5% decline in consolidated revenues q-o-q in constant currency terms.
Across the board, workforce reductions were a common theme. Infosys, Tech Mahindra, and HCL Tech all reported fewer employees in the June 2026 quarter compared to the previous one, indicating a focus on cost optimization.
Infosys also trimmed its FY27 growth forecast to 1.5%-3% in constant currency, adding to investor concerns. The broader IT sector continues to face bearish sentiment, with the Nifty IT index significantly underperforming the Nifty50.
