Tech Giants' Q2 Results Reflect the Limitations of Billion Dollar Deals
The Q2 earnings of major IT services companies, including TCS, Infosys, and HCL Tech, have shown positive results in terms of margins and record-high total contract value (TCV) of deal wins. While the companies employed strategies to maintain margins, there has been a setback in discretionary demand, leading to reduced revenue guidance by Infosys. However, the increase in deal wins is seen as a positive sign for future revenue growth, and analysts expect margin expansion for these companies in the coming years. The stabilization and improvement of discretionary spending are crucial for meeting revenue growth estimates in the long term.