Rising macroeconomic uncertainties will impact the growth of information and technology (IT) companies in the financial year 2026 (FY26), Nomura said in its latest report.
The report says that the large-cap IT companies will have a subdued quarter, with all companies likely posting a sequential drop in revenues. “Rising macro uncertainty to weigh on growth in FY26F,” the report added.
The report points out that the financial year 2025 (FY25F) was a year of growth recovery for most Indian IT companies. A partial rebound in discretionary spending, particularly within the financial services vertical, supported this recovery.
However, rising macroeconomic uncertainty–driven in part by concerns around US tariffs–is expected to weigh on client decision-making and potentially moderate the pace of revenue growth improvement in FY26.
The report points out that the financial year 2025 (FY25F) was a year of growth recovery for most Indian IT companies. A partial rebound in discretionary spending, particularly within the financial services vertical, supported this recovery.
However, rising macroeconomic uncertainty–driven in part by concerns around US tariffs–is expected to weigh on client decision-making and potentially moderate the pace of revenue growth improvement in FY26.
However, the company has also cautioned that heightened macro uncertainty could lead clients to adopt a more conservative stance on IT spending.
The financial services firm lowered its forecast for financial year 2026 for the Indian IT companies. “We lower our FY26F revenue growth outlook by 230-350 bp for large-cap Indian IT services companies, acknowledging rising risks of macro slowdown in the US,” the report adds.
On April 2, US President Trump announced a widespread imposition of tariffs on countries worldwide. In February, soon after taking charge for the second time, Trump outlined a new trade policy focused on fairness and reciprocity and said that the US would implement reciprocal tariffs, charging other countries the same tariffs they impose on American goods.
