Infosys vs Wipro vs LTIM: What Goldman Sachs says post Q2 results

Goldman Sachs in a note said all six IT services firms under its coverage delivered results largely in line or slightly better than estimates for the September quarter, with sector-wide sequential revenue growth of 1.5 per cent. Deal momentum and management commentary suggest December 2025 could also be a “decent quarter,” with Goldman expecting 1.7 per cent quarter-on-quarter growth in services revenue.

However, the brokerage has made only minor tweaks to its full-year estimates — it now expects FY26 revenue growth of 1.1 per cent year-on-year (up 10 bps) and FY27 growth of 5.4 per cent (down 10 bps). While there are early signs of demand stabilisation, Goldman noted that visibility into CY26 remains limited. It also highlighted that AI-led productivity gains are becoming mainstream, which could cap valuation multiples.

Infosys
Infosys reported 2.2 per cent sequential revenue growth in constant currency terms (including 20 bps inorganic) and 8 per cent EBIT growth year-on-year — both in line with Goldman’s estimates. The company raised the lower end of its FY26 revenue growth guidance by 100 bps to 2–3 per cent, matching Goldman’s projections.

Goldman was, however, surprised that Infosys did not lift the upper end of its guidance despite a strong first half, a recent mega deal win, and a 2.5 per cent quarter-on-quarter rise in headcount. The firm sees this as possibly reflecting deal ramp-down risks. Infosys’ commentary suggests no major change in discretionary demand. Goldman now expects FY26 revenue to grow 3.1 per cent (up 10 bps) and trimmed its FY27 forecast by 50 bps to 5.3 per cent due to weaker visibility. EBIT estimates were cut by up to 1 per cent. The 12-month target price remains unchanged at Rs 1,570, with a Neutral rating.

Wipro
Wipro’s 0.3 per cent constant-currency revenue growth met Goldman’s estimate, though EBIT was flat year-on-year — a 4 per cent miss. The company guided for -0.5 to +1.5 per cent sequential growth for Q3, around 50 bps below Goldman’s forecast.

Wipro expects margin pressure as new deals ramp up. While clients are seeking efficiency gains, the company is not yet seeing unusual productivity pass-through trends. Goldman forecasts a third straight year of revenue decline, with FY26 revenue expected to fall 1.4 per cent (down 10 bps) and FY27 growth steady at 3.5 per cent. EBIT estimates were lowered by up to 2 per cent. The target price stays at Rs 232 ($2.6 ADR), with a Sell rating.

LTIMindtree (LTIM)
LTIM posted 2.4 per cent sequential revenue growth in constant currency, slightly below Goldman’s estimate but in line with Visible Alpha consensus. EBIT rose 13 per cent year-on-year, beating expectations, with margins expanding 160 bps quarter-on-quarter. The company expects further margin improvement and sees growth momentum continuing.

LTIM anticipates its dollar revenue growth to approach 10 per cent during FY26 (around 8 per cent constant currency), significantly outpacing peers. However, revenue from its top five accounts fell, attributed to AI-led productivity gains. Goldman kept its FY26 growth estimate at 5.5 per cent but raised FY27 growth by 50 bps to 7.5 per cent, reflecting stronger deal momentum. EBIT forecasts were lifted by up to 8 per cent. The 12-month target price has been revised to Rs 5,300 (from Rs 4,940) on the same P/E multiple, with a Neutral rating.