Indian IT companies are expected to face pressure on third-quarter earnings, with concerns around H-1B visas and furloughs weighing on growth. According to Systematix, large-cap IT firms are likely to report marginal quarter-on-quarter US dollar revenue growth of 0–2 percent, impacted by fewer working days, seasonal trends, and continued caution in discretionary client spending.

Market focus will turn to Q3 earnings announcements next week, with major IT players such as Tata Consultancy Services, HCLTech, Tech Mahindra, and Wipro together accounting for nearly 13 percent of the Nifty index. Analysts said management commentary on client technology spending, hiring plans, and the impact of stricter H-1B visa approvals will be closely tracked by investors.

Systematix noted that demand conditions remain steady but cautious amid macroeconomic uncertainty, with companies gradually transitioning toward AI-led solutions as a long-term growth driver. Tata Consultancy Services is set to announce its Q3 results on January 12, followed by Infosys on January 14, with outcomes expected to influence broader market sentiment.