Indian IT revenue growth was stronger in Europe than in North America for several major services companies in the quarter ended September 30, 2026. TCS, Infosys, Wipro and Tech Mahindra reported better European performance, while HCLTech bucked the pattern with growth in the US and a decline in Europe.

Key Takeaways

  • Europe outperformed North America at several major Indian IT companies, but the regional pattern was not universal.
  • Executives described selective US spending, with clients prioritizing cost savings and business-critical projects.
  • Positive comments about pipelines and recovery remain management expectations, not evidence of a completed rebound.

Indian IT revenue shows a regional divide

The September-quarter results showed that softer North American demand did not translate into uniform weakness across markets. Infosys and Wipro recorded European growth alongside declines in their North American or broader Americas businesses, while TCS and Tech Mahindra grew in both regions.

The regional figures require care. TCS reports Continental Europe, HCLTech’s cited American figure covers the US, and Wipro’s Americas divisions include the US, Latin America and Canada. Tech Mahindra’s growth figures were not identified as constant-currency measures in the supplied results summary, unlike those cited for the other companies.

Constant-currency growth removes the effect of exchange-rate fluctuations, helping distinguish changes in underlying business activity from currency translation.

ItemDetails
TCSQ2 FY27 year-over-year constant-currency revenue growth: Continental Europe 3.3%; North America 1.5%.
InfosysQ2 FY27 year-over-year constant-currency revenue growth: Europe 4.6%; North America minus 1.5%.
WiproQ2 FY27 year-over-year constant-currency revenue growth: Europe 5.1%; Americas 1 minus 2.7%; Americas 2 minus 4.7%.
Tech MahindraQ2 FY27 year-over-year revenue growth: Europe 16.2%; North America 4.1%. The figures were not identified as constant currency.
HCLTechQ2 FY27 year-over-year constant-currency revenue growth: Europe minus 0.3%; US 3.5%.

Selective spending shapes US demand

Gartner Senior Principal Analyst Biswajit Maity said North American technology spending remained selective and concentrated on business-critical initiatives. Europe, the UK, Asia Pacific and emerging markets generally performed better.

Infosys Chief Financial Officer Jayesh Sanghrajka described the US market as soft over the preceding few quarters. He pointed to a specific high-tech client reviewing its systems and lower discretionary spending on plants in certain North American segments, offset by stronger performance elsewhere.

Wipro Chief Executive Srini Pallia said US healthcare clients faced policy changes, slowing membership growth and margin pressure. Large payers were prioritizing cost reductions, AI, automation, compliance and productivity initiatives. In Europe, he said clients were also reassessing AI strategies, particularly sovereign AI, rather than focusing solely on cost optimization and vendor consolidation.

Wipro’s overall results and guidance remain distinct

Wipro’s September-quarter financial results showed IT services revenue increased 0.6% year over year in constant currency and was flat sequentially. That modest overall growth provides context for the company’s contrasting regional performance.

For the quarter ending December 31, 2026, Wipro forecast IT services revenue of $2,571 million to $2,625 million, equivalent to a sequential constant-currency change of minus 1.5% to plus 0.5%. This is management guidance, not a reported result.

Pallia described the US economy as strong and Wipro’s regional pipeline as robust. TCS Chief Executive K Krithivasan also expressed confidence in customer discussions and total contract value, saying he expected North American revenue to recover. Those comments signal management confidence but do not establish when stronger demand will convert into revenue.

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