BENGALURU : India’s top IT services firms kicked off the earnings season of the October-December quarter on a stronger-than-expected note, even as new wage norms pushed up costs and raised concerns over profitability. Both Tata Consultancy Services (TCS) and HCL Technologies beat analyst revenue estimates. TCS reported $7.51 billion in revenue for the quarter, down 0.4% year-on-year (y-o-y) and up 0.6% from the previous quarter. A Bloomberg poll of 32 analysts had expected revenue of $7.43 billion. HCLTech ...

NOIDA, India, Jan. 12, 2026 /PRNewswire/ -- HCLTech (NSE: HCLTECH.NS) (BSE: HCLTECH.BO), a leading global technology company, has entered into a multi-year partnership to design, build and manage a future-ready IT infrastructure for The Magnum Ice Cream Company (TMICC), the world's largest ice cream company. In the coming years, HCLTech will deploy its AI Force platform to embed AI across TMICC's digital infrastructure. HCLTech's solutions integrate predictive analytics, improve business process observabili ...

Goldman Sachs downgraded ServiceNow (NYSE:NOW) from Buy to Sell, causing a notable price drop to $141.80.Despite the downgrade, ServiceNow remains highly searched on Zacks.com, indicating sustained investor interest.The stock has experienced a 15.7% decline over the past month, outpacing the losses in both the S&P 500 and its industry.ServiceNow (NYSE:NOW) is a prominent player in the IT services industry, providing cloud-based solutions to streamline digital workflows. The company is known for its innovati ...

Core Insights - Infosys Ltd risks losing over a third of its $400 million annual revenue from Daimler due to the German automaker seeking a new vendor for software and equipment following execution delays [1][2] - The loss primarily concerns the contract for IT services, including the provision of iPhone cases, laptops, and Microsoft 365 subscriptions for Daimler's IT operations [2] - Infosys ended FY25 with $19.28 billion in revenue and now needs to backfill $150 million, or 0.7% of its business, amid macroeconomic uncertainties and client spending pressures [3] Contractual Details - Infosys signed a $3.2 billion, eight-year IT transformation deal with Daimler in December 2020, covering six business divisions [4] - The contract includes services such as network services, cybersecurity, and data centers, but the workplace solutions segment is pending renewal [5][6] - Daimler owes Infosys nearly $47 million in dues since 2021, highlighting ongoing issues with execution and billing [6] Competitive Landscape - Another Indian IT services provider is eyeing a portion of Infosys' contract with Daimler and has already made a bid [7] - The Daimler contract is one of the largest for Infosys, which has secured multiple mega deals since CEO Salil Parekh took over in January 2018 [8] Financial Performance - Revenue from Infosys Automotive and Mobility GmbH, created for the Daimler project, declined by 8.5% to $418 million in FY25, marking the first decline after two years of growth [12][13] - The overall revenue for Infosys grew 42% to $19.28 billion in FY25, with the Daimler project significantly contributing to this growth [10] Industry Trends - The trend of clients terminating contracts with IT service providers mid-way through deals is becoming more common, as seen with other companies like Transamerica and HCL Technologies [14][15]

Core Insights - The iShares Semiconductor ETF (SOXX) focuses specifically on semiconductor companies, while the State Street Technology Select Sector SPDR ETF (XLK) offers broader exposure to the technology sector at a lower cost [1][5] Fund Comparison - SOXX consists of 30 positions entirely within the technology sector, heavily weighted towards semiconductors, with major holdings in Advanced Micro Devices, Broadcom, and Nvidia [2] - XLK holds approximately 70 stocks, covering a wide range of technology subindustries, including hardware, software, IT services, and communications equipment, with top positions in Nvidia (13.72%), Apple (12.82%), and Microsoft (11.17%) [3] Performance Metrics - SOXX has achieved a five-year compound annual growth rate (CAGR) of 21.1%, but has also faced significant volatility, including a maximum drawdown of over 45% in 2022 [6] - XLK has a five-year CAGR of 18.6% and a maximum drawdown of 33.5%, indicating greater stability compared to SOXX [7] Cost and Yield - The expense ratio for SOXX is 0.34%, while XLK is significantly lower at 0.08%, with yields of 0.62% for SOXX and 0.55% for XLK [4][6] Investor Suitability - More conservative investors may prefer XLK due to its lower fees and reduced historical drawdowns, while aggressive investors might be attracted to SOXX's higher returns and concentrated sector focus [8]

Company Performance - Mingteng International Corporation Inc. (NASDAQ: MTEN) experiences a dramatic price drop of 76.72%, falling to $0.14 from a year high of $26.03, potentially linked to market sentiment and company performance [2] - China SXT Pharmaceuticals, Inc. (NASDAQ: SXTC) faces a 49.90% price decline to $0.62, launching a Strategic Artificial Intelligence (AI) Insights Initiative to optimize its portfolio and enhance market analysis [3] - Veea Inc. sees a 40.45% decrease in its price to $0.05, with challenges in the IT services sector impacting its market position [4] - Aclarion, Inc. (NASDAQ: ACON) reports a 39.75% price decrease to $4.92, but shows a significant increase in Nociscan scan volumes and maintains a debt-free balance sheet with $12 million in cash [5] Market Dynamics - The price movements of these companies highlight the volatile nature of the market and the various factors influencing company valuations [6] - Companies are facing challenges such as regulatory issues, technological competition, and market sentiment, which are affecting investor confidence and market positions [4][5]

HONG KONG, Jan. 09, 2026 (GLOBE NEWSWIRE) -- 3 E Network Technology Group Limited (Nasdaq: MASK) (the “Company” or “3e Network”), a business-to-business (“B2B”) information technology (“IT”) business solutions provider committed to becoming a next-generation artificial intelligence (“AI”) infrastructure solutions provider, today announced the subsequent closing of its previously announced convertible promissory note offering. As previously disclosed on December 18, 2025, the Company entered into a series of ...

Upgrades - Wells Fargo upgraded Airbnb (ABNB) to Equal Weight from Underweight with a price target of $128, up from $118, citing two years of share underperformance and opportunities in hotel supply and sponsored listings, along with relative insulation from AI risk [2] - Barclays also upgraded Airbnb to Equal Weight from Underweight with a price target of $120, up from $107 [2] - Susquehanna upgraded American Airlines (AAL) to Positive from Neutral with a price target of $20, up from $14, noting a constructive fundamental backdrop for airlines into fiscal 2026 [2] - JPMorgan double upgraded Southwest (LUV) to Overweight from Underweight with a price target of $60, up from $36, highlighting a potential for a $5 earnings per share outlook for 2026 [2] - Berenberg upgraded CrowdStrike (CRWD) to Buy from Hold with an unchanged price target of $600, citing valuation following recent underperformance [2] - BofA upgraded FedEx (FDX) to Buy from Neutral with a price target of $365, expecting demand to be aided by infrastructure investments and $1.4 trillion in expected expenditures over the next three years [2]

Core Insights - Atos has formed a strategic partnership with the World DanceSport Federation (WDSF) to enhance the technological evolution of DanceSport globally [1][3][8] Company Overview - Atos is a global leader in secure, AI-driven digital transformation, with approximately 67,000 employees and annual revenue of around €10 billion [11] - The company operates in 61 countries and is recognized as the European leader in cybersecurity, cloud, and high-performance computing [11] Partnership Details - The partnership aims to launch several technology-driven projects, focusing on digital ticketing, competition services, data-driven insights, and fan engagement solutions [3][6] - The first initiative was a customized ticketing and distribution platform for the WDSF DanceSport Festival, which significantly increased ticket sales within the first 12 hours of launch [4][5] Future Initiatives - Atos and WDSF will continue to collaborate on digital services for upcoming major events, including the 2026 WDSF DanceSport Festival and the 2026 Brisbane World Breaking DanceSport Festival [5][6] - The collaboration will also include smart competition management and enhanced broadcast solutions to expand DanceSport's global reach [6][10] Industry Impact - The partnership is expected to set new standards for innovation and excellence in DanceSport, enhancing accessibility and appeal for athletes and fans [8][10] - Atos has over 30 years of experience in delivering innovative solutions for major sporting events, reinforcing its commitment to the sports community [9][10]

Core Viewpoint - Tata Consultancy Services Ltd (TCS) is actively transforming its image from a traditional IT outsourcer to a more dynamic player in the tech industry through significant acquisitions and investments [1][2][3]. Group 1: Recent Developments - TCS announced its largest acquisition since going public, acquiring Coastal Cloud for $700 million, aimed at enhancing its Salesforce capabilities [2]. - The company is investing $6.5 billion over six years to build 1GW of data center capacity, marking a significant shift in its operational strategy [2]. - TCS is reportedly in the process of securing a $1 billion, 10-year contract with Telefónica UK, which would end a two-year drought in billion-dollar deals [3]. Group 2: Leadership and Internal Changes - TCS is undergoing a structural leadership overhaul, promoting middle-level executives to leadership roles amid the exit of older executives [4]. - Under the new COO Aarthi Subramanian, routine operations are being scrutinized, with leaders being held accountable for service line gaps [5]. Group 3: Analyst Sentiment and Market Performance - Despite recent positive developments, TCS has been the worst-performing stock among India's four largest IT services firms, declining 4.6% over the past six months [8]. - Analysts from several brokerages have started to view TCS more favorably, citing improved deal momentum and internal restructuring [7]. Group 4: Growth and Revenue Challenges - TCS faces growth constraints following the completion of a major project, with its data center initiative unlikely to yield immediate revenue [12]. - The company has not provided formal guidance but has indicated that international revenues should improve year-on-year despite muted demand [11]. Group 5: AI and Technological Developments - TCS announced $1.5 billion in annualized revenue from AI by September 2025, although widespread adoption of AI technologies remains uncertain [14]. - Analysts expect that AI will contribute to growth from the next fiscal year, but the growth cycle for AI is anticipated to be more gradual compared to previous tech cycles [16]. Group 6: Margin and Execution Concerns - The data center strategy involves significant capital expenditure, which may pressure margins, alongside costs related to wage hikes and layoffs [17]. - Concerns about execution and strategic clarity have intensified, with TCS losing key accounts to competitors due to delivery issues [18].