Wipro and Infosys ADRs Decline Following TCS's Strong Q4 Results
Wipro, Infosys ADRs fall over 2% after TCS reports Q4 results. What to expect on Friday?
The Economic TimesImage: The Economic Times
American Depository Receipts (ADRs) of Wipro and Infosys fell over 2% in early trading on the New York Stock Exchange after Tata Consultancy Services (TCS) reported a 12% increase in net profit for Q4. The market anticipates a muted opening for these stocks on Friday.
- 01Wipro ADRs fell nearly 2%, while Infosys ADRs declined just over 2%.
- 02TCS reported a 12% growth in net profit, reaching ₹13,718 crore (approximately $1.65 billion USD).
- 03TCS's revenues rose 10% year-on-year to ₹70,698 crore (approximately $8.5 billion USD).
- 04The company secured three major deals worth a total contract value of $12 billion.
- 05Management emphasized AI's role in growth, with annualized AI revenue exceeding $2.3 billion.
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In early trading on the New York Stock Exchange, American Depository Receipts (ADRs) of Wipro and Infosys experienced declines of over 2% following the announcement of Tata Consultancy Services (TCS) fourth quarter results. TCS reported a 12% increase in net profit, amounting to ₹13,718 crore (approximately $1.65 billion USD), and a 10% rise in revenues to ₹70,698 crore (approximately $8.5 billion USD). The company attributed its growth to three significant deals, with a total contract value of $12 billion. TCS's management highlighted a strategic focus on artificial intelligence (AI), noting that annualized AI revenue surpassed $2.3 billion in Q4FY26. Despite increasing investments in AI, TCS managed to expand its margins, indicating that such spending is not adversely affecting profitability. Analysts view TCS's performance as largely meeting expectations, with strong deal wins likely to positively influence future earnings.
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The decline in ADRs may affect investor sentiment towards Indian IT stocks in the US market, potentially leading to cautious trading behavior among investors.
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