ReferIndia News Indian IT firms likely to report muted Q1 growth amid AI spending, macro uncertainty

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Indian IT firms likely to report muted Q1 growth amid AI spending, macro uncertainty

Published on: July 4, 2026, 3:35 p.m. | Source: The Economic Times

India's Information Technology (IT) companies are expected to report another quarter of subdued earnings growth despite seasonal strength, due to client-specific issues, weakness in select verticals and geopolitical uncertainty. Addressable tech spending in Indian IT companies is expected to remain softer year-on-year as enterprises redirect technology budgets towards artificial intelligence (AI) initiatives and Global Capability Centres (GCCs), according to a report by Systematix Research.

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