Q4 results preview: Macro headwinds cloud IT firms' growth outlook

Accenture said last week discretionary spending has picked up in financial services and in the US

As the curtains draw on the current financial year, Indian information technology (IT) firms remain cautious, with expectations of a soft fourth quarter, driven by lower discretionary spending and ongoing macroeconomic uncertainties.

 

Concerns over recovery in FY26 persist, with rising risks stemming from tariff wars and inflation.

 

Analysts reckon that the final quarter of FY25 (January-March) may see improved client demand, particularly in the financial services sector.

 

However, the recent commentary from Accenture, after its Q2 results, has raised concerns about growth prospects for FY26.

 

Many believe that heightened global macroeconomic uncertainty, particularly the impact of tariffs on the US