It posted sequential revenue growth of 0.6% and year-on-year growth of 1.7% in constant currency terms. In dollar terms, revenues rose 0.5% sequentially and 3.2% year-on-year to $5 billion.TCS reported a 0.8% rise in revenue in constant currency terms but posted a 2.6% year-on-year decline. In contrast, HCLTech recorded stronger growth, with an increase of 4.2% quarter-on-quarter and 4.8% year-on-year. Infosys revised its revenue growth guidance for FY26 to 3%–3.5%, indicating improving visibility on demand ...

Core Insights - FPT has been recognized as a Major Contender in the Everest Group Banking IT Services PEAK Matrix® Assessment 2025, marking its first appearance in this industry benchmark [1] Group 1: Company Positioning - The assessment evaluated 41 providers in the banking IT services sector [1] - Providers are categorized into Leaders, Major Contenders, Aspirants, and Star Performers based on their capabilities [1] Group 2: Evaluation Criteria - The evaluation criteria include the ability to support modernization, adopt agentic AI in a responsible and scalable manner, and assist banks [1]

Core Insights - The U.S. Court of Appeals for the Fifth Circuit upheld a $194 million award to DXC's subsidiary, CSC, for trade secret misappropriation by Tata Consultancy Services (TCS) [1][2] - The court affirmed that TCS acted willfully and maliciously in misappropriating CSC's trade secrets, with over $100 million awarded in punitive damages due to TCS's repeated deceitful actions [2] Company Commitment - DXC Technology emphasizes its commitment to responsible innovation, ethical conduct, and the protection of intellectual property as fundamental to its operations [3] - The ruling is seen as a validation of DXC's six-year pursuit of legal action to protect its intellectual property, which is crucial for maintaining customer trust [2][3] Leadership Perspective - CEO Raul Fernandez stated that trust, ethics, and responsible innovation are core principles guiding DXC's operations, highlighting the importance of safeguarding mission-critical systems for clients [3] - The company aims to ensure that innovation is deployed responsibly, thereby strengthening customer trust and driving long-term business outcomes [3] Company Overview - DXC Technology is a leading enterprise technology partner that provides software, services, and solutions to global enterprises and public sector organizations, focusing on AI and modernization [4] - The company specializes in Managed Infrastructure Services, Application Modernization, and Industry-Specific Software Solutions, operating complex technology estates [4]

Core Insights - Coastal has been acquired by Tata Consultancy Services (TCS), enhancing its capabilities in Salesforce and data-led transformation on a global scale [1][2] - The acquisition allows Coastal to maintain its culture and customer-first approach while leveraging TCS's resources and expertise [2][4] Company Overview - Coastal, formerly known as Coastal Cloud, is a leading consultancy specializing in Salesforce, data, and AI, founded in 2012 [2][6] - The company has a team of over 600 professionals in North America, holding 3,091 certifications, including 442 in Agentforce, AI, and Snowflake [3] - Coastal has a five-star customer satisfaction rating on AppExchange and serves 1,700 customers [5][6] TCS Overview - Tata Consultancy Services (TCS) is a global leader in IT services and digital transformation, operating in 46 countries [1][7] - TCS generated consolidated revenues exceeding US $30 billion for the fiscal year ending March 31, 2025 [9] - The company has a workforce spread across 55 countries and 202 service delivery centers, recognized as a top employer on six continents [8]

Core Viewpoint - IBM will hold its quarterly conference call to discuss its fourth-quarter 2025 financial results on January 28, 2026 [1] Company Information - The earnings call is scheduled for 5:00 p.m. ET [1] - A live webcast of the earnings call will be available at www.ibm.com/investor [1] - An earnings press release will be accessible prior to the webcast on the investor website [1] - A replay, associated charts, and prepared remarks will be available after the event [1]

Financial Data and Key Metrics Changes - Revenues for Q3 FY 2026 were $5.1 billion, reflecting a sequential growth of 0.6% and a year-on-year growth of 1.7% in constant currency terms [5][11] - Adjusted operating margin for Q3 was 21.2%, with a reported margin of 18.4% impacted by changes in labor codes [11][12] - Free cash flow generated was $915 million, with an adjusted free cash flow conversion for nine months standing at 118% [15][16] - The company revised its revenue growth guidance for FY 2026 to 3%-3.5% in constant currency [9][21] Business Line Data and Key Metrics Changes - Large deal total contract value (TCV) for Q3 was robust at $4.8 billion, with 57% being net new deals [14][17] - Financial services vertical saw a year-on-year growth of 3.9% in constant currency terms, with Europe leading growth at 7.2% [12][17] - The healthcare sector benefited from a significant $1.6 billion deal with the National Health Service in the UK, contributing to incremental revenues [5][39] Market Data and Key Metrics Changes - The company signed 26 large deals during the quarter, with 10 in financial services and 16 in the Americas [17][18] - There is a noted shift in client priorities towards AI-led transformation and vendor consolidation across various sectors [19][20] - The manufacturing vertical is facing challenges due to tariff uncertainties, while the energy sector is witnessing increased demand driven by infrastructure investments [18][19] Company Strategy and Development Direction - The company is expanding its strategic partnerships with AI companies and has deepened its AI capabilities with the Topaz AI suite [6][8] - Six AI-led value pools have been identified as significant growth opportunities, including AI engineering services and legacy modernization [8][9] - The company aims to position itself as a leading AI value creator for global enterprises, with a focus on driving value realization from AI investments [9][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for FY 2027, particularly in financial services and energy sectors, driven by strong deal wins [9][21] - The operating environment remains challenging, with a focus on cost discipline and efficiency among clients [20][21] - Management highlighted the importance of AI in driving future growth and the increasing demand for AI infrastructure and services [19][20] Other Important Information - The company completed its largest-ever buyback, returning INR 18,000 crores to shareholders, which is expected to aid in EPS accretion [16] - The labor code changes had a notable impact on operating profit, net profit, and free cash flow for the quarter [11][12] Q&A Session Summary Question: Why is the implied outlook for Q4 not stronger despite strong signings? - Management indicated that while there is strong momentum, the lower working day calendar in Q4 presents a headwind [25][29] Question: Are there signs of discretionary spending expanding beyond financial services and energy? - Management confirmed that growth is expected in financial services and energy, but other sectors are still emerging [25][26] Question: Is AI a headwind or tailwind for margins? - Management stated that AI projects are not negatively impacting pricing and are seen as accretive [30][32] Question: What is the outlook for North America and specific industries? - Management noted a contraction in North America due to lower third-party costs across segments [35][36] Question: How is the healthcare sector performing? - The healthcare sector saw significant growth, partly due to the NHS deal, with expectations for continued contribution [39][41] Question: What is the impact of new labor laws on margins? - The recurring impact of new labor laws is expected to be approximately 15 basis points on an ongoing basis [61][62]

Financial Data and Key Metrics Changes - Revenues for Q3 FY 2026 were $5.1 billion, reflecting a sequential growth of 0.6% and a year-on-year growth of 1.7% in constant currency terms [11][12] - Adjusted operating margin for Q3 was 21.2%, with a reported margin of 18.4% impacted by changes in labor codes [12][16] - Free cash flow for the quarter was robust at $965 million, representing 113% of adjusted net profit [16] - The company revised its revenue growth guidance for FY 2026 to 3%-3.5% in constant currency [9][22] Business Line Data and Key Metrics Changes - Financial Services saw a year-on-year growth of 3.9% in constant currency terms, with strong momentum in large deals and discretionary projects [12][17] - The healthcare sector benefited significantly from a $1.6 billion deal with the National Health Service in the U.K., contributing to incremental revenues [5][40] - The manufacturing vertical is facing challenges, particularly in the automotive sector, while some strength is noted in data center supply capabilities [57][58] Market Data and Key Metrics Changes - Europe led growth with a 7.2% year-on-year increase in constant currency terms [12] - The Americas experienced a contraction of approximately 1% year-on-year, attributed to lower third-party costs across segments [35][36] - The energy and utilities sectors are expected to see growth acceleration in FY 2027, driven by increased discretionary spending [20][22] Company Strategy and Development Direction - The company is focusing on expanding its AI capabilities, with 90% of its largest clients engaged in AI projects and a total of 4,600 AI projects underway [6][9] - Infosys aims to capture market share across six identified AI value pools, including AI engineering services and legacy modernization [8][9] - Strategic partnerships with AI companies, such as Cognition, are being pursued to enhance service offerings [6][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the uncertain environment, citing strong year-to-date performance and robust deal wins [22] - The company anticipates a shift from compliance to business growth in Financial Services, with elevated interest in AI-led transformation [18][21] - There is a cautious optimism regarding discretionary spending in various sectors, with expectations for growth in FY 2027 [9][22] Other Important Information - The company completed its largest-ever buyback, returning INR 18,000 crores to shareholders, which is expected to aid in EPS accretion [16] - Adjusted EPS in Rupee terms grew by 11.5% year-on-year for the nine-month period [16] - The impact of new labor laws is expected to result in a recurring margin impact of approximately 15 basis points [60] Q&A Session Summary Question: Why is the implied outlook for Q4 not stronger despite strong signings? - Management noted that while there is strong momentum, the lower working day calendar in Q4 presents a headwind [26][29] Question: Are there signs of discretionary spending expanding beyond Financial Services and energy? - Management confirmed that growth is expected in Financial Services and energy, but other sectors are still emerging [26][27] Question: Is AI a headwind or tailwind for margins? - Management indicated that AI projects are not negatively impacting pricing and are seen as accretive [30][32] Question: What is the outlook for North America? - Management expects a contraction in North America due to lower third-party costs across segments [35][36] Question: How are clients approaching their 2026 budgets? - There is increased activity in AI and discretionary spending in Financial Services, with expectations for growth [36][37] Question: What is the impact of the NHS deal on healthcare growth? - The NHS deal contributed significantly to healthcare growth, with expectations for residual contributions [40][41] Question: What is the recurring impact of new labor laws on margins? - The recurring impact is expected to be approximately 15 basis points going forward [60]

Financial Data and Key Metrics Changes - Revenues grew 0.6% sequentially and 1.7% year-on-year in constant currency terms, reaching $5.1 billion [3][8] - Adjusted operating margin was 21.2%, while the reported operating margin, impacted by labor code changes, was 18.4% [8][9] - Free cash flow generated was $915 million, with an adjusted free cash flow conversion for nine months standing at 118% [8][12] - The company revised its revenue growth guidance for FY26 to 3%-3.5% in constant currency [6][18] Business Line Data and Key Metrics Changes - Large deals totaled $4.8 billion in Q3, with 57% being net new deals, across 26 deals [3][11] - Financial services saw a year-on-year growth of 3.9% in constant currency terms, with strong momentum in large deals and discretionary projects [9][14] - The healthcare sector benefited from a significant $1.6 billion deal with the National Health Service in the UK, contributing to incremental revenue growth [3][35] Market Data and Key Metrics Changes - Europe led growth with a 7.2% year-on-year increase in constant currency terms [9] - The Americas saw a contraction of approximately 1% year-on-year, attributed to lower third-party costs across segments [30][31] - The company is witnessing increased demand for AI-led transformation and modernization across various sectors, particularly in financial services and energy utilities [16][18] Company Strategy and Development Direction - The company is focusing on expanding its AI capabilities, with 90% of its 200 largest clients engaged in AI projects [4][6] - Six AI-led value pools have been identified as significant growth opportunities, including AI engineering services and legacy modernization [5][6] - Strategic partnerships with AI companies, such as Cognition, are being pursued to enhance service offerings [4][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model and the relevance of offerings despite seasonal weaknesses [8] - There is an expectation of growth acceleration in FY27, particularly in financial services and energy utilities, driven by strong deal wins [6][18] - The company anticipates a shift from compliance to business growth in financial services, with increased discretionary spending expected [15][18] Other Important Information - The company completed its largest-ever buyback, returning INR 18,000 crores to shareholders, which is expected to aid in EPS accretion [12] - Labor code changes had a notable impact on operating profit, net profit, EPS, and free cash flow for the quarter [8][9] - The company is investing in talent, with a net headcount increase of 5,000 to 337,000 employees [10] Q&A Session Summary Question: Why is the implied outlook for Q4 not stronger despite strong signings? - Management noted that while there is strong momentum, lower working days in the quarter are a headwind for guidance [22][25] Question: Are margins under pressure due to pricing? - Management indicated that pricing has been accretive, with no significant headwinds from AI projects affecting margins [26][27] Question: What is the outlook for North America? - Management expects a contraction in North America due to lower third-party costs across segments [30][31] Question: Is there a shift in AI strategy across verticals? - Management confirmed increased interest in AI across various industries, with financial services showing significant momentum [41][82] Question: What is the impact of new labor laws on margins? - The recurring impact of new labor laws is expected to be approximately 15 basis points on an ongoing basis [55]

Core Insights - Infosys reported Q3 revenues of $5,099 million, reflecting a year-on-year growth of 1.7% and a sequential growth of 0.6% in constant currency [1][7] - The reported IFRS operating margin was 18.4%, while the adjusted operating margin increased to 21.2% [1][7] - Free cash flow generation was strong at $915 million, with adjusted free cash flow at $965 million, representing 112.8% of adjusted net profit [1][7] Financial Performance - Year-to-date revenues for December 2025 grew by 2.8% year-on-year in constant currency, with reported IFRS revenues at $15,117 million, a growth of 3.9% year-on-year [2][7] - The reported IFRS operating margin for the year-to-date period was 20.0%, and the adjusted operating margin was 21.0% [2][7] - Basic EPS for Q3 was reported at $0.18, while adjusted basic EPS was $0.21 [7][23] Strategic Initiatives - Infosys emphasized its differentiated value propositions in enterprise AI through Infosys Topaz, which has helped increase market share and client partnerships [3][8] - The company is committed to reskilling and empowering its workforce to succeed in an AI-augmented environment [3][8] Client Collaborations - Infosys extended its collaboration with Metro Bank to enhance finance operations using Workday solutions [9] - The company launched an AI-first Global Capability Center model to support digital transformation for clients like Lufthansa Systems [9] - Collaborations with NHS Business Services Authority and Telenor Shared Services aim to modernize workforce management and HR operations, respectively [9][10] Awards and Recognitions - Infosys received multiple recognitions, including being named a leader in various IDC MarketScape assessments and recognized for its commitment to inclusion and diversity [14][19]

Core Insights - Infosys Ltd., India's second-largest IT services company, reported a mixed performance for the third quarter, characterized by a decline in profit but steady revenue growth and an improved outlook for the company [1] Financial Performance - The company experienced a decline in profit during the third quarter, indicating potential challenges in cost management or market conditions [1] - Despite the profit decline, Infosys reported steady revenue growth, suggesting resilience in its core business operations [1] - The outlook for the company has improved, which may indicate positive expectations for future performance and strategic initiatives [1]