TCS vs Infosys vs Wipro: Which stock stands out?

India’s top IT firms — Infosys, Tata Consultancy Services (TCS), and Wipro — wrapped up their Q4 FY25 earnings under the shadow of economic slowdown fears, rising geopolitical tensions, and fresh US trade policies under President Trump’s tariff-driven agenda. The results were mixed, but analysts are leaning towards TCS as the most stable bet among the three.

IT Sector Faces Tough Global Conditions

For Indian IT companies, the March 2025 quarter was marred by weak client spending in the US and Europe — their biggest markets. To make matters worse, new US tariffs added to recession concerns, squeezing business sentiment and delaying IT budgets. Ongoing inflation and slower decision-making further hurt revenue growth, resulting in subdued earnings for the country’s top tech players.

How Infosys, TCS, and Wipro Performed in Q4 FY25

Infosys posted an 11.75% YoY drop in net profit to ₹7,033 crore, despite an 8% rise in revenue to ₹40,925 crore. Its revenue growth guidance for FY26 was between 0-3% in constant currency (CC) — the weakest since 2009. However, the company declared a ₹22 per share dividend.

TCS, India’s largest IT company, reported a 1.7% decline in profit at ₹12,224 crore, with a 5% increase in revenue to ₹64,479 crore — its slowest growth in four years. Management cited delays in wage hikes and discretionary projects due to global uncertainties.

Wipro, on the other hand, surprised with a 26% jump in Q4 profit to ₹3,567 crore, though its revenue was flat at ₹22,504.2 crore. Despite this, investor sentiment took a hit as Wipro’s Q1 FY26 guidance projected a (-)1.5% to (-)3.5% decline in IT services revenue in CC terms, reflecting weak deal momentum.

How Did the Market React?

Despite lacklustre results, IT stocks rallied on April 21:

Infosys rose nearly 2% to ₹1,450.45

Wipro edged up 0.65% to ₹238.45

TCS gained 0.69% to ₹3,321.60

Vinod Nair, Head of Research at Geojit Financial Services, noted that “investors see IT as a contrarian opportunity, attracted by valuations and expectations of a recovery in the second half of FY26.”

TCS vs Infosys vs Wipro: Which Stock Stands Out?

According to Seema Srivastava, Senior Research Analyst at SMC Global Securities, while Q4 was a mixed bag, TCS stands out for its resilience and stability.

Key highlights:

TCS clocked $12.2 billion in deal wins, driven by AI and cloud services, which now account for over a third of its client engagements. Growth in India and the Asia-Pacific also bolstered performance.

Infosys reported 7.9% YoY revenue growth (4.8% in CC) and a 21% operating margin. It’s banking on AI, cloud, and operational efficiency, backed by a ₹22 dividend.

Wipro saw a 12-quarter high operating margin of 17.5% but struggles with weak client spending and a discouraging Q1 FY26 forecast.

Seema believes TCS is the best long-term pick, thanks to consistent deal wins, strong execution, and expanding AI capabilities. Infosys presents innovation-driven potential but may face near-term headwinds. Wipro is still in a transition phase — operationally improving but lacking growth triggers.

Bottom Line

For long-term investors seeking stability and reliable returns, TCS remains the top choice. Infosys suits those betting on AI-led growth, while Wipro appeals to contrarians hoping for a turnaround.

Disclaimer: Investors should consult certified financial advisors before making investment decisions.