TWILTCH earnings prove that enterprises are spending, but only on what matters now

If you want to know what your peers are really prioritizing, you should look beyond press releases and where they’re spending. TWILTCH (TCS, Wipro, Infosys, LTIMindtree, Tech Mahindra, Cognizant, and HCLTech)—India’s leading heritage IT and business services providers—and their financial results are often used as an indicator for market-wide performance, which is why enterprise leaders should pay careful attention.

Exhibit 1 indicates slow but improving revenue growth for the services industry, proof that enterprises are continuing to spend. Average growth rates are climbing to low single digits, reaching 3% YoY in Q2 2025, a definite improvement from Q2 2024 when revenue grew by 0.9% YoY.

Exhibit 1: Q2 2025 revenue growth was driven by Cognizant, HCLTech, LTIMindtree, and Infosys

Note: Revenue and growth data represent HFS estimates based on analysis of publicly available information. YoY growth compares a quarter with the same quarter of the previous year.
Source: HFS Research and earnings reports of leading service providers, 2025

Vendor consolidation and efficiency-led transformation are leading to larger deals

Enterprises are sending clear signals: investments are shifting to consolidation and efficiency-led transformation. Every TWILTCH provider highlighted this in their latest earnings reports. Rising contract values suggest that enterprises are seeking fewer overall partners in favor of larger strategic relationships. Despite this, booking numbers remain higher than recognized revenue, indicating that larger deals are taking time to ramp up.

Enterprises are also prioritizing AI to drive new efficiencies, with many claiming that AI investments have crossed the threshold from experimentation to execution. However, our conversations with leaders revealed this might not be the case just yet. TWILTCH are continuing to embed AI agents within their services, but the broader impact on these companies, their clients, and the shared cost efficiencies is yet to play out.

Concurrently, growth is fragmented across different geographies and industries, largely driven by macroeconomic uncertainty, including tariff and policy-driven concerns. BFSI stands out for its stability despite these headwinds, while the manufacturing and high-tech sectors are under pressure from discretionary spending cuts and delayed decision cycles.

Delving into the Q2 2025 earnings of each TWILTCH provider

• TCS reported a 1.1% YoY revenue decline, its first in four years, primarily led by the life sciences and healthcare (-8.3% YoY) and communication and media (-7.5% YoY) businesses. By region, North America fell by 2.7% YoY and India contracted by 23.5% YoY on completion of the BSNL program, which weighed down the overall revenue mix this quarter.
• Wipro reported a 1.5% YoY revenue decline, translating to a ~$200 million drop vs. Q2 2023. This was due to sharp falls in Europe (-8.6% YoY) and the Americas (-2.7% YoY), client ramp-down in BFSI, and softness in the consumer and EMR (energy, manufacturing, and resources) businesses. Leadership also cited revenue lag from cost-takeouts and vendor consolidation mega deals.
• Infosys reported 4.8% YoY revenue growth, owing to volume growth in Europe (16.3% YoY), manufacturing (14.8% YoY), energy, utilities, resources, and services (7.2%YoY ), and financial services (6.3% YoY), as well as inorganic growth of ~$20 million through the acquisitions of MRE Consulting (US-based energy consulting) and The Missing Link (cybersecurity firm in Australia). Management attributed AI momentum and consolidation as the primary growth drivers, with higher realization through Project Maximus, despite a decline in pass-through billing of third-party costs.
• LTIMindtree reported 2% YoY revenue growth in Q2 2025, thanks to the sustained growth in North America (4.2% YoY), BFSI (10.6% YoY), manufacturing and resources (11.5% YoY), and consumer (5.9% YoY). Management attributed the large deal wins to its sales transformation, vendor consolidation wins, and AI-led propositions moving from pilots to production, aiding growth and productivity.
• Tech Mahindra reported almost flat 0.3% YoY growth. The decline in the Americas (-5.9% YoY) was balanced by strong growth in Europe (11.4% YoY). By sector, manufacturing, high-tech and media, and healthcare and life sciences fell, balanced by growth in the communications, BFSI, and consumer verticals.
• Cognizant reported 8.1% YoY growth, the highest among its TWILTCH peers, supported by strong growth across regions and verticals. Key drivers include the ramp-up of large deal wins, including two mega deals worth ~$1 billion, and an inorganic boost from the Belcan acquisition, which contributed 4% to YoY revenue growth.
• HCLTech reported 5.4% YoY growth, led by growth in Europe, the rest of the world, and all business verticals excluding life sciences, healthcare, and public services. Growth in Europe was driven by an extensive multi-tower integrated transformation program spanning cloud infrastructure, automation, data, and operations, with a global technology conglomerate based in the region.

The Bottom Line: Enterprises focusing solely on efficiency gains will miss long-term opportunities.

TWILTCH earnings show more than just revenue figures; they indicate where enterprises are investing. Efficiency-led transformation and vendor consolidation are dominating many enterprises’ minds today, but they can’t afford to have such a short-term mindset. The real challenge is balancing short-term survival efforts with a long-term vision and investment into AI-driven value.