The December quarter earnings for 2025 is all set to begin in the month of January 2026, with Tata Consultancy Services (TCS) and HCL Technologies to kickstart the season by announcing its Q3 FY25 results on January 12, 2026.
Meanwhile, IT major Infosys will be posting its December quarterly financial results on January 14, according to BSE results calendar.
IT sector outlook in near-term
According to Sugandha Sachdeva- Founder-SS WealthStreet, large-cap IT stocks are beginning to show early signs of bottoming out, after a prolonged phase of correction, consolidation, and relative underperformance through most of 2025.
With earnings lined up in January, easing global monetary conditions, currency tailwinds, and improving technical structures, the IT sector appears well-placed for a potential turnaround in 2026.
“IT index remains down roughly 11% in 2025, making valuations attractive relative to broader markets. While regulatory overhangs such as changes to H-1B visa norms persist, their impact on large Indian IT players is likely to be limited. Over the years, companies have diversified delivery models, increased local hiring in the US, and reduced dependence on visa-heavy staffing. The earnings season ahead is likely to act as a critical catalyst, but structurally, the IT sector’s risk-reward equation is turning favourable after a prolonged period of underperformance,” said Sachdeva.
Which IT stock to buy ahead of Q3FY25 results?
Sachdeva believes that Wipro offers selective upside; however, HCL Tech stands out as the preferred pick, driven by better momentum, AI-led growth visibility, and superior relative strength.
“AI-led productivity gains are emerging as a key margin stabiliser and growth driver across the sector. With global rate cuts, currency tailwinds, and improving demand visibility, large-cap IT stocks—especially TCS and HCL Tech appear well-positioned to outperform in 2026,” she added.
Meanwhile, Sachdeva picked TCS as preferred stock in the large-cap segment for long-term investors who seek stability, saying that the Tata Group IT company appears more stable from a relative-strength and risk-reward perspective.
“The stock seems to have carved out a strong floor near Rs.2,850, and longer-term charts suggest accumulation at lower levels. With strong BFSI exposure, consistent execution, and margin resilience, TCS continues to offer defensive comfort within the IT pack,” she added.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
