India’s leading information technology companies are set to report another quiet quarter with only around 4% revenue growth in the December quarter of 2025. Nine brokerages forecast a 5% rise in profits, down from 6.5% revenue growth in the previous quarter. The slowdown comes as US demand stays low and many clients shut during the holiday period. The US market is crucial because Indian IT earns a large part of its revenue there. Factors like US tariff uncertainties, proposed $100,000 visa fees, and cautious client spending are creating headwinds. Tata Consultancy Services (TCS), India’s biggest IT firm, will open the earnings season on January 12, likely showing 4.2% revenue growth year-on-year. Infosys and HCLTech are expected to report 8.1% and 4.6% growth respectively, slightly slower than last year. Most brokers do not expect these firms to raise their fiscal 2026 revenue forecasts. Despite the near-term gloom, there is hope from artificial intelligence (AI). While India has no pure AI companies, IT firms are starting AI strategies through deals and partnerships. Accenture recently beat expectations on AI demand, though it kept its growth outlook steady, signaling caution. "Clients remain cautious about committing incremental spending to large programs amid macro and tariff uncertainty and a new tech cycle," said Abhishek Pathak, analyst at Motilal Oswal Financial Services. The sector had a tough 2025 with foreign investors pulling out $8.5 billion from IT stocks, weighing on the Nifty IT index, which fell 12.6%. However, some bright spots remain — banking and financial services are steady, deal volumes are rising, and a weaker rupee plus early AI efforts may help by mid-2026. Brokerages suggest earnings outside IT may improve due to tax cuts and stable growth, but IT firms face fewer billable days and margin pressures from wage hikes and furloughs. Overall, India’s IT giants prepare for a muted quarter but hope AI and other factors will fuel stronger growth soon.