TCS Revenue Miss Sparks IT Sell-Off Amid Global Trade Worries
- TCS missed revenue estimates due to cautious client spending, dragging down Infosys and Wipro shares and causing a dip in India’s equity benchmarks.
- Former U.S. President Trump announced steep tariffs, adding uncertainty to global trade and further affecting export-dependent sectors like IT.
- HUL named Priya Nair as new CEO, Tata Elxsi reported weak Q1 profits, and Zee Entertainment failed to secure shareholder votes for a fundraise.
Tata Consultancy Services (TCS) reported its first-quarter earnings after market hours, falling short of revenue expectations due to cautious client spending driven by global tariff concerns. The shortfall, coming from India’s largest IT firm and the first tech major to report this quarter, triggered broader concerns for the country's $283 billion IT sector.
Following the TCS report, U.S.-listed shares of Indian IT rivals Infosys and Wipro dropped by approximately 4% and 5%, respectively. Several brokerages have revised their fiscal 2026 earnings forecasts for TCS, citing a subdued demand environment and uncertainty surrounding discretionary IT spending.
India’s equity benchmarks also reflected the sector's weak outlook, slipping around 0.5% on Thursday, weighed down largely by IT stocks.
Adding to the global unease, former U.S. President Donald Trump announced a 35% tariff on Canadian imports starting next month and proposed broad-based tariffs of 15% to 20% on most trading partners. This escalating trade rhetoric has fueled further concerns over the near-term demand outlook for export-reliant sectors, including IT.
In other corporate news, Hindustan Unilever Ltd. (HUL) appointed Priya Nair as its new CEO and managing director, replacing Rohit Jawa ahead of his five-year term completion.
Meanwhile, Tata Elxsi reported weaker-than-expected Q1 profit due to industry-specific challenges impacting R&D spend. Zee Entertainment also suffered a setback as it failed to secure shareholder approval to raise funds via warrants, halting the Goenka family's plan to increase their stake.
