Infosys and Wipro Report Divergent Q2 Results Amidst Global IT Challenges

India’s leading IT services firms, Infosys and Wipro, have unveiled their financial results for the July–September 2025 quarter, showcasing contrasting performances that reflect the sector’s ongoing challenges and opportunities.

Infosys: Demonstrating Resilience

Infosys reported a 2.9% year-on-year revenue growth in constant currency terms, with total quarterly revenue reaching $5 billion—a 3.7% increase in dollar terms. The company secured $3.1 billion in large deals, with 67% being new contracts, and maintained stable operating margins at 21%. Infosys also added 8,000 employees net and hired 12,000 freshers, indicating its commitment to talent acquisition and retention.

Wipro: Facing Headwinds

In contrast, Wipro’s revenue declined 2.6% year-on-year, although it recorded a slight 0.3% sequential gain. Revenue in Q2 was $2.6 billion, with its IT services guidance set between $2.5 to $2.6 billion for the next quarter. Operating margins dropped to 16.7%, impacted by a one-time charge due to customer bankruptcy. Despite securing two significant contracts exceeding $500 million each, Wipro continues to face pressure in manufacturing and consumer sectors.

Sectoral Implications and Outlook

Both companies operate in a global IT landscape characterized by subdued demand, ongoing tariff uncertainties, and cautious client spending. Infosys’s performance highlights its strategic focus on high-growth sectors such as financial services and manufacturing, while Wipro’s results underscore the challenges faced in certain verticals.

Conclusion

The divergent Q2 results of Infosys and Wipro underscore the varied trajectories within India’s IT services sector. While Infosys demonstrates resilience through strategic deal-making and sectoral diversification, Wipro’s performance reflects the complexities of navigating a competitive and uncertain global market. As both companies continue to adapt to evolving industry dynamics, their future performances will be closely watched by investors and industry analysts alike.