IT sector finds its footing: Muted Q4 but FY26 outlook offers hope on strong order books

As the fiscal fourth quarter earnings season is now nearing its end, most leading IT services companies have already reported their Q4 results. A review of their performance indicated that the sector ended FY25 on a soft note, in line with expectations. An analysis report by JM Financial maintained that the fourth quarter revenues for the IT sector declined by 0.6–3.5 per cent in constant currency terms across the top players, with five out of the six missing estimates.