India’s information technology companies are expected to show another weak quarter. Nine brokerages predict around 4% revenue growth and 5% profit growth for the December quarter among the top six IT firms. This is slower than the 6.5% revenue growth seen in the previous quarter. The IT industry, worth $283 billion, faces headwinds like uncertainty over US tariffs, visa fee proposals, and cautious client spending in the US, which provides a large share of their revenue. Sector leader Accenture beat earnings estimates, driven by AI demand, but kept its growth forecast steady, showing a cautious outlook. "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. Tariff worries and weak spending led to $8.5 billion in foreign outflows from IT stocks in 2025. The Nifty IT index dropped 12.6%, the worst-performing sector last year. Tata Consultancy Services (TCS) will start the earnings season on January 12, with expected revenue growth of 4.2%, slower than last year’s 5.6%. Infosys and HCLTech are forecast to grow revenues by 8.1% and 4.6%, respectively. Most brokerages do not expect upgrades to fiscal 2026 revenue forecasts from these firms. Earnings in domestic equities may improve overall due to tax cuts and policy easing. However, few workdays during global client holidays and rising costs like wages and furloughs pressure IT margins. Still, strong performance in banking and finance sectors, new deals, early AI strategies, and a weaker rupee may help by mid-2026, says six brokerages.