Leadership Gains Erased as IT Sector Faces Automation and Ramp-Up Delays

In just two trading sessions,

and saw sharp stock declines that erased gains made under their new CEOs. Despite beating Q3FY26 expectations, both firms face investor skepticism driven by AI-led automation, pricing pressure, and delayed deal ramp-ups. These sector-wide headwinds have overshadowed operational improvements, prompting a reassessment of near-term growth visibility. Wipro Ltd - Stock rose 10.16% from CEO Srinivas Pallia’s appointment (April 2024) to pre-Q3FY26 results (Jan 2026). - Q3FY26 revenue: $2.64 billion, up 1.2% QoQ, beating estimates. - Stock fell 8% on Monday, followed by 2.4% on Tuesday, wiping out CEO-era gains. - Q4FY26 guidance: $2.64–2.69 billion, implying flat to negative growth. - Organic growth outlook weak: –1.6% to +0.5% QoQ CC, excluding Harman DTS contribution. - Management flagged delayed ramp-ups of large deals and fewer working days as key constraints. - CFO Aparna Iyer confirmed deal impact will be gradual, with full realization expected over coming quarters. LTIMindtree - Stock rose 26.36% from CEO Venu Lambu’s appointment (May 2025) to pre-Q3FY26 results. - Q3FY26 revenue: $1.21 billion, up 2.4% QoQ, best Q3 in three years. - Stock fell 7% post-results, erasing 25%+ of CEO-era gains. - Decline attributed to AI-led productivity initiatives at top accounts. - Motilal Oswal analysts noted four of top five clients have completed AI programs, with the fifth stabilizing by Q4. Sector Headwinds and Outlook - Broader IT sector faces AI-induced pricing pressure and tariff uncertainty. - Investors remain cautious despite operational beats, focusing on organic growth visibility and deal execution timelines. - Analysts expect gradual recovery, but sentiment hinges on AI normalization and ramp-up clarity.