India's IT giants see AI easing pricing pressure, growth outlook improves

A recent ICICI Securities analysis, using Cognizant's latest results, suggests that the biggest AI‑related concern for Indian IT firms – pressure on pricing and earnings – is diminishing. The report notes that only about 25% of Cognizant’s revenue still comes from pre‑AI contracts, with new pricing to be set over the next 12‑18 months. As AI projects cut costs and accelerate delivery, investors are watching which companies can turn AI into new business.

If the trend holds, companies such as Tata Consultancy Services, Infosys, HCL Technologies and Wipro could see their growth forecasts lift, with analysts projecting modest organic growth ranging from 1% to 4% for FY26‑27. Cognizant already has over 8,000 AI projects and more than 40% of its software development now AI‑assisted, signalling a shift from cost‑reduction to revenue generation.