Archive · 3 Jan 2026
IT Sector Q3 Preview: AI Demand in Focus
The IT sector is getting ready to announce its Q3 results, and everyone is watching to see how companies like TCS and HCL Technologies did.
Experts think this quarter might be a bit slow because of seasonal factors, but they're really interested in what the companies say about the rest of the year.
They believe that AI is going to be a big part of the demand, and companies that are good at AI might do better.
Some companies are also getting better deals because the rupee got weaker, which helps their profits.
Brokerages have different opinions on which companies to invest in, with some recommending 'buy', 'add', or 'sell' ratings based on their performance and future potential.
IT sector Q3 results are expected to be muted due to seasonality, but focus is on AI-led demand and management outlook for 2026.
Motilal Oswal forecasts QoQ growth of 0.3% to 2.3% for large-caps and -2.5% to 3.5% for mid-caps in Q3FY26.
AI services demand is expected to improve from mid-2026 as spending shifts toward software, platforms, and services.
Currency movements, including a 2.2% rupee depreciation, improved margins and revenues in rupee terms but limited dollar-term growth.
Brokerages have varying recommendations, with 'buy' ratings on TCS, Coforge, Infosys, and others, while some stocks receive 'sell' ratings.
- Who
- Indian IT sector companies, including TCS, HCL Technologies, Infosys, Tech Mahindra, Coforge, and Hexaware Technologies
- What
- Q3 results preview and analysis of the IT sector, focusing on AI-led demand and market outlook
- When
- Results for the quarter and nine-months ended on December 31, 2025
- Where
- India
- Why
- To understand the performance and future outlook of the IT sector, particularly the impact of AI-led demand and seasonal factors
- TCS
- Target Price: Rs 3,950 (Buy)
- Coforge
- Target Price: Rs 2,045 (Buy)
- Happiest Minds
- Target Price: Rs 670 (Buy)
- Datamatics Global
- Target Price: Rs 1,130 (Buy)
- HCL Technologies
- Target Price: Rs 1,720 (Buy)
- Infosys
- Target Price: Rs 1,810 (Buy)
- Tech Mahindra
- Target Price: Rs 1,730 (Buy)
- Zensar Technologies
- Target Price: Rs 1,000 (Buy)
- Wipro
- Target Price: Rs 285 (Add)
- Persistent Systems
- Target Price: Rs 6,050 (Add)
- Mphasis
- Target Price: Rs 2,935 (Add)
- LTIMindTree
- Target Price: Rs 5,800 (Add)
- Hexaware Technologies
- Target Price: Rs 700 (Neutral)
- Mphasis
- Target Price: Rs 2,780 (Neutral)
- L&T Technologies
- Target Price: Rs 3,700 (Sell)
- Coforge
- Target Price: Rs 1,530 (Sell)
- Persistent Systems
- Target Price: Rs 4,970 (Sell)
- LTIMindTree
- Target Price: Rs 4,900 (Sell)
- Tech Mahindra
- Target Price: Rs 1,290 (Sell)
- Tata Technologies
- Target Price: Rs 585 (Sell)
Sources
IT Q3 preview: AI led demand in focus; Infy, TCS, Coforge, HCL Tech, TechM among top picks
KPIT Tech, Tata Elxsi, LTTS: Choice Broking picks top ER&D stock ahead of Q3 results
‘Key theme in 2026 will be discretionary consumption, ’ says Kailash Kulkarni, CEO, HSBC Mutual Fund - Business News
India's manufacturing sector activity falls to 2-yr low in Dec
IT hiring outlook for 2026 stable with AI as limiting factor
