IT Giants HCL, TCS Q3 Results Signal Potential Turnaround; AI Driving Growth

• HCL Technologies and TCS Q3 FY26 earnings met expectations, avoiding previous quarters' disappointments.
• Despite past selling pressure and weak investor sentiment due to US capex cuts and layoffs, a 'whiff of positivity' is emerging.
• HCL reported better-than-expected revenue growth with 43% YoY and 17% sequential order flow growth, upping its revenue guidance.
• TCS maintained stable revenue and strong deals, sustaining a healthy 1.2x book-to-bill ratio, while both companies preserved profitability.
• Management commentaries highlight confidence in AI-driven revenue traction, with HCL reporting $100 million in Advanced AI revenue.

Why It Matters: Early Q3 results from HCL and TCS suggest the IT sector may be past its worst, with AI driving new growth.