Infosys and Wipro ADRs Drop Nearly 3% After TCS Earnings and US Visa Policy Changes

Shares of Infosys and Wipro American Depository Receipts (ADRs) declined by close to 3 percent in US trading on Thursday, influenced by Tata Consultancy Services’ (TCS) latest quarterly earnings report and fresh US government restrictions on employment-based immigration programs. Investors appear cautious as concerns rise over the growth prospects of Indian IT companies amid evolving technology spending trends and tighter immigration policies.

Infosys ADRs traded down 2.8 percent, landing at $10.26 around 9 p.m. Indian Standard Time. Wipro ADRs also fell, losing 2.5 percent to reach $1.63 during the same period. These declines came shortly after TCS, India’s largest IT services firm, announced its financial results for the quarter ending September 2026.

TCS reported a 15 percent increase in consolidated net profit year-over-year, reaching Rs 13,884 crore for the quarter. Revenue grew by 11.2 percent, hitting Rs 73,188 crore. The company’s operating margin stood at a solid 24 percent. Notably, TCS revealed its annualized revenue from artificial intelligence-related initiatives crossed $3.1 billion, accounting for more than 10 percent of its total revenue. The company’s total contract value was $9.6 billion, and its employee base expanded to 598,056 workers. Alongside these results, TCS declared a second interim dividend of Rs 12 per share.

While TCS’s performance showed strength in AI adoption and revenue growth, the broader Indian IT sector faced headwinds following actions taken by the US government targeting employment-based immigration programs. The US administration announced suspensions affecting large technology companies from the Permanent Labour Certification (PERM) program. This program is a key pathway for employers to sponsor foreign workers, including many Indian IT professionals, for permanent residency in the US.

US Vice President JD Vance emphasized the government’s stance by accusing companies like Microsoft of misusing the program and underscored the need to prioritize hiring American workers. The suspension extended beyond Microsoft and Adobe, also covering firms such as Cognizant, Infosys, Tata Group companies, Wipro, HCL Technologies, and Capgemini. These suspensions are part of broader federal investigations into alleged abuses of the PERM process.

It is important to understand that the PERM program operates separately from the H-1B visa system but remains closely connected because it serves as a critical step for H-1B visa holders seeking employment-based green cards. The recent clampdown therefore raises fresh concerns for Indian IT companies that heavily depend on the US market and employ large numbers of Indian professionals there.

US Labor Secretary Keith Sonderling highlighted that the suspensions followed ongoing investigations. The administration’s message has been clear: US companies should focus more on recruiting and developing domestic talent. This approach aligns with a series of measures introduced over recent years aimed at tightening the scrutiny of foreign worker programs.

Previously, in September 2026, the US Department of Labor had suspended PERM filings for Cognizant amid allegations of fraud and misuse of immigration programs. The current restrictions add another layer of uncertainty for Indian IT firms navigating a complex regulatory environment in their largest overseas market.

Investors are also weighing other challenges facing the Indian IT sector. These include fluctuations in technology spending by corporate clients, margin pressures due to wage inflation and competition, and the disruptive impact of artificial intelligence on traditional IT services models. While TCS’s results indicated growth in AI-driven revenues, its sequential constant-currency revenue rise was modest at 0.5 percent.

Indian IT companies have been central to the global technology services landscape, providing software development, consulting, and digital transformation services to a wide range of clients. Their performance often reflects global economic conditions, technology trends, and policy environments in major markets such as the US.

The recent decline in Infosys and Wipro ADR prices underscores investor caution as these companies adapt to evolving market dynamics and regulatory challenges. How the sector adjusts to US immigration policies and capitalizes on emerging technologies like AI will be crucial for its future trajectory.

For those tracking market movements, these developments highlight the intricate interplay between corporate earnings, government policy, and sector-specific risks. As Indian IT firms report results and respond to regulatory changes, market participants remain attentive to indicators of sustainable growth and operational resilience.