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Infosys Shares Jump on Strong FY2026 Outlook, Lifting IT Stocks

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Shares of Infosys rose about 5% on Friday after the company unexpectedly raised its fiscal 2026 revenue forecast, boosting sentiment across India’s IT sector.

Infosys now expects revenue growth of 3%–3.5% in the year ending March 2026, up from its earlier 2%–3% outlook. The stock led gains on the Nifty 50, while the Nifty IT climbed 2.2%.

Analysts said AI-led partnerships and vendor consolidation are strengthening Infosys’s competitive position. The company has won AI-driven deals with Adobe and Siemens AG, and its large-deal order book rose to a two-year high of $4.8 billion.

At least three brokerages, including Jefferies, raised target prices after the results. The upbeat outlook follows comments from Tata Consultancy Services earlier this week pointing to solid demand in 2026, helping lift broader IT stocks, including Wipro.

Wipro Lags Rivals as Deal Wins Slide and Q4 Outlook Disappoints

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Wipro, India’s fourth-largest IT services provider, delivered a weaker-than-expected outlook for the current quarter on Friday after reporting its lowest deal bookings in six quarters, underscoring its struggle to keep pace with larger rivals amid uneven demand.

The Bengaluru-based firm said it expects revenue growth in the fourth quarter to range from flat to 2% sequentially, including contributions from acquisitions. That fell short of market expectations, with Kotak Institutional Equities forecasting growth of 1.5% to 3.5%. Following the announcement, Wipro’s U.S.-listed shares dropped as much as 7.2%.

The subdued guidance contrasted with stronger performances from bigger competitors such as Tata Consultancy Services and Infosys, both of which reported steadier deal wins and better-than-expected revenue in the seasonally weak third quarter.

“Wipro’s revenue growth was broadly in line with estimates, but deal wins were slightly below average. More importantly, its guidance is below street expectations,” said Anmol Garg, an analyst at DAM Capital.

Wipro reported total deal bookings of $3.34 billion for the December quarter, its weakest showing in six quarters, down from $4.69 billion in the previous quarter and $3.5 billion a year earlier. Consolidated revenue rose 5.54% year-on-year to 235.56 billion rupees ($2.59 billion), beating analysts’ average estimate of 233.91 billion rupees, according to LSEG data.

Net profit, however, fell 7% to 31.19 billion rupees, missing market expectations. The quarter included a one-time charge of 3 billion rupees linked to India’s new labour codes, adding pressure to earnings.

Analysts said margins remain under strain as Wipro continues to invest heavily in AI-driven delivery models while absorbing higher compliance costs and rising wages. “Wipro is prioritising long-term capability building, even as demand remains uneven,” said Gaurav Parab, an analyst at NelsonHall.

SECTOR SIGNALS TURN MIXED
The broader outlook for India’s $283 billion IT sector is showing tentative improvement. Smaller rival Tech Mahindra beat third-quarter revenue estimates on Friday, supported by stronger demand from communications clients.

After cutting back discretionary spending amid tariff-related uncertainty, clients are gradually increasing investment in AI-led projects. Wipro Chief Executive Srini Pallia said there is “a very clear shift towards AI-led transformation,” though the benefits have yet to fully translate into stronger deal momentum for the company.

Tech Mahindra struck a more optimistic tone. Chief Executive Mohit Joshi said the company expects to outperform peers in revenue growth next fiscal year, citing stabilising client spending in the United States and signs that Europe could move from stability into a growth phase.

For now, Wipro’s softer deal pipeline and cautious near-term guidance highlight the uneven recovery across India’s IT services landscape, even as AI-driven demand begins to re-emerge.

Taiwan Seeks Strategic AI Partnership With U.S. After Tariff Deal

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Taiwan aims to position itself as a close strategic partner of the United States in artificial intelligence following a trade deal that cuts tariffs and encourages large-scale Taiwanese investment in the U.S., Vice Premier Cheng Li-chiun said on Friday.

Speaking at a press conference in Washington, Cheng said the negotiations promoted two-way high-tech investment and laid the groundwork for deeper cooperation in AI. The talks come as the administration of U.S. President Donald Trump presses major semiconductor producers to expand manufacturing in the United States, particularly for chips that power AI systems.

Cheng led the negotiations that resulted in Thursday’s agreement, which reduces tariffs on many Taiwanese exports and channels new investment into the U.S. technology sector. While the deal strengthens Taiwan–U.S. ties, it risks angering China, which claims democratically governed Taiwan as its territory—claims Taipei firmly rejects.

U.S. Commerce Secretary Howard Lutnick said Taiwanese companies would invest about $250 billion in the United States across semiconductors, energy and AI. That figure includes $100 billion already committed in 2025 by TSMC, the world’s leading producer of advanced AI chips, with additional investment expected. Taiwan will also guarantee another $250 billion in credit to support further projects, according to the Trump administration.

Cheng described the agreement as “win-win,” saying it would also attract more U.S. investment into Taiwan. She stressed that the expansion is company-led rather than government-directed and does not mean abandoning domestic production. “This is not about ‘moving’ but about ‘building,’” she said, calling the U.S. expansion an extension of Taiwan’s technology ecosystem.

Taiwan Economy Minister Kung Ming-hsin said investments would also cover AI servers and energy infrastructure, though companies would disclose chip-related figures themselves. Taiwan’s benchmark stock index closed at a record high on Friday, buoyed by strong TSMC earnings and investor optimism over the deal.

Chang Chien-yi, president of the Taiwan Institute of Economic Research, said the agreement underscores Washington’s view of Taiwan as a key strategic partner in semiconductors, noting it was the first country to receive preferential treatment for chips and related products.

In a statement, TSMC welcomed the prospect of robust U.S.–Taiwan trade ties, reiterating that its investment decisions are driven by market demand. The deal must still be ratified by Taiwan’s parliament, where opposition lawmakers have raised concerns about the risk of hollowing out the island’s critical chip industry.

Lutnick said the objective was to bring 40% of Taiwan’s chip supply chain to the United States, warning that production not built on U.S. soil could face tariffs of up to 100%. Kung said Taiwan estimates that by 2036 the production split for advanced chips would be closer to 80% in Taiwan and 20% in the United States.

Taiwan Vice President Hsiao Bi-khim said the agreement demonstrated Taiwan’s importance in global trade. “Taiwan may not be large in area, but we are agile and innovative—and an indispensable force in the global supply chain,” she said.