# IT Firms' Q2 Reality Check: Growth Recovery Still Out of Sight

> IT firms face weak Q2 growth as AI pressures and macro uncertainty delay recovery.
- Title: IT Firms' Q2 Reality Check: Growth Recovery Still Out of Sight
- Summary: IT firms face weak Q2 growth as AI pressures and macro uncertainty delay recovery. Indian IT stocks show muted Q2FY27 growth with large firms expected to…
- Keywords: it sector, q2fy27, tata consultancy services, accenture, hcl technologies, infosys, jefferies india, nifty it index, ai adoption, revenue growth, money, business
- Source: mint — https://livemint.com/market/mark-to-market/it-sector-q2-results-2026-27-tcs-infosys-hcltech-11791095158698.html
- Author: Harsha Jethmalani
- Published: 2026-10-05T00:30:22+00:00
- Read time: 1 min
- Topics: it sector, q2fy27, tata consultancy services, accenture, hcl technologies, infosys, jefferies india, nifty it index, ai adoption, revenue growth, money, business
## Q2 Earnings Season Begins
Tata Consultancy Services releases Q2FY27 results on 8 October, marking the start of Indian IT sector earnings season.

> Q2 is usually a seasonally strong quarter
## Accenture's Q4FY26 Results
Accenture delivered 7% year-on-year revenue growth in Q4FY26, exceeding guidance and consensus estimates.

> 7% year-on-year revenue growth
## Accenture's FY27 Growth Target
Accenture's FY27 revenue growth target of 3-6% is ahead of Street's 2-5% expectations.

> FY27 revenue growth target of 3-6%
## Organic Growth Concerns
Systematix Shares and Stocks (India) notes Accenture's FY27 growth target implies modest 0.5, 4% organic growth, below FY26 organic growth of 3%.

> modest 0.5, 4% organic growth
## Q2FY27 Growth Projections
Jefferies India expects 1.7% aggregate sequential constant currency revenue growth for IT firms in Q2FY27, led by acquisitions.

> 1.7% aggregate sequential constant currency revenue growth
## Tier-II Firms Outperform
Mid-sized IT firms are expected to see 3.5% sequential constant currency revenue growth, while large firms grow at 0.5%.

> 3.5% sequential constant currency revenue growth
## Q2FY27 Weakness for Large Firms
Q2FY27 is the weakest quarter for large IT firms in the past three years with 0.5% growth.

> 0.5% growth
## Key takeaway

Indian IT stocks show muted Q2FY27 growth with large firms expected to grow 0.5% while tier-II firms lead at 3.5%.