India’s top IT giants — Infosys, Tata Consultancy Services (TCS), and Wipro — delivered forgettable results for the quarter ended March 2025, weighed down by a mix of macroeconomic and geopolitical headwinds.

The IT sector continued to be plagued by weakness in client spending, particularly in key markets like the United States and Europe. Meanwhile, a major blow came from the imposition of tariffs by US President Donald Trump, which not only escalated trade tensions but also exacerbated fears of a potential recession in the US, which is the largest revenue contributor for Indian IT companies. Additionally, persistent inflationary pressures and delayed decision-making on IT budgets compounded the troubles for Indian IT companies, leading to a disappointing performance by the top industry players.

How did TCS, Infosys and Wipro fare in Q4 results?

Infosys, which was the latest among the three to post its Q4 results, reported an 11.75% year-on-year (YoY) decline in consolidated net profit to ₹7,033 crore for the quarter ended March 2025. Its revenue from operations jumped 8% YoY to ₹40,925 crore. The second largest IT company projected flat to 3% revenue growth for FY26 in constant currency (CC) terms, its weakest guidance since April 2009. Although it rewarded shareholders with a dividend of ₹22 per share.

Meanwhile, India’s biggest IT company – TCS – posted a 1.7% fall in Q4 PAT to ₹12,224 crore. However, the IT major posted a 5% growth in revenue to ₹64,479 crore, its slowest in the last four years. The management hinted at delayed wage hikes amid tariff-related uncertainty and delays in decision-making and project-starting with respect to discretionary investments.

Wipro, though, witnessed a sharp rise in its Q4 profit of 26% to ₹3,567 crore, its revenue from operations was flat at ₹22,504.20 crore. But what hurt investor sentiment was Wipro’s Q1 guidance of (-)1.5% to (-)3.5% for the IT services segment in CC terms, as it signalled caution on the deal front.

While IT numbers were poor, the stocks of all these companies rallied in trade on Monday, April 21. Infosys reacted to its Q4 performance, rising nearly 2% to ₹1,450.45 apiece on the BSE. It posted its Q4 results post market hours on Thursday. Wipro shares also rebounded mildly after facing sharp selloff last week, ending 0.65% higher at ₹238.45. TCS share price rose 0.69% ay ₹3321.60.

“A contrarian bet on IT due to its attractive valuation with an expectation of improvement in spending in the latter half of FY26 is keeping the counter busy,” said Vinod Nair, Head of Research, Geojit Investments Limited.

TCS vs Infosys vs Wipro: Which IT stock to buy post Q4 results?

According to analysts, while the results from IT companies were a mixed bag, TCS stands out among the three.

In Q4 FY25, Tata Consultancy Services, Infosys, and Wipro reported mixed results amid a cautious global IT environment, said Seema Srivastava, Senior Research Analyst at SMC Global Securities.

“TCS delivered a strong performance, aided by significant growth in India and Asia-Pacific markets. The company secured $12.2 billion in deal wins for the quarter, driven by strong demand for AI and cloud services—now embedded in over a third of client engagements. Infosys reported revenue of ₹40,925 crore, growing 7.9% YoY (4.8% in constant currency), with an operating margin of 21%. Backed by strong performance in AI, cloud, and efficiency projects, the company proposed a ₹22 final dividend and guided FY26 revenue growth of 0–3% in constant currency. Wipro, however, struggled the most. Despite a 12-quarter high operating margin of 17.5%, it faces pressure from declining client spending and a weak Q1 FY26 revenue outlook,” Srivastava said, highlighting the key aspects of the three IT companies’ Q4 results.

She believes that in the long-term, TCS appears the most resilient, backed by consistent deal wins, expanding AI capabilities, and strong execution across markets, making it a top choice for stable long-term investment. “Infosys offers innovation-driven potential with its AI and R&D initiatives but may see slower momentum in the near term. Wipro is in a transitional phase—improving operationally but still facing growth challenges,” she said.

According to her, for long-term investors, TCS offers the best balance of performance and stability, while Infosys and Wipro cater more too growth-focused or contrarian strategies.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.