2025 has been a volatile year for technology service providers, with Q2 earnings revealing a landscape marked by mixed results and cautious optimism. We examined the earnings of Accenture, Capgemini, Cognizant, HCL Tech, IBM Consulting, Infosys, Kyndryl, TCS, Tech Mahindra, and Wipro. While some providers saw bookings and revenue growth, others faced declines in one of those, and the overall forecast for the remainder of the year remains uncertain. Overall, one theme stands out: artificial intelligence (AI) is reshaping the industry’s trajectory.

It’s Been A Bumpy Year For Service Provider Revenue, But AI Continues To Power A More Hopeful Forecast

Forrester’s analysis of Q2 2025 earnings from leading public technology service providers shows a mixed bag of bookings and revenues, driven by consolidation and transformation. For example, Accenture’s new bookings were down 7% in local currency, while Wipro’s bookings soared 51% year over year to $5 billion. Revenue results also varied: Accenture’s revenue was up 7% in constant currency, but Kyndryl, TCS, and Wipro saw declines. Executives cited ongoing client focus on large-scale reinventions and cost optimization, with discretionary spending under pressure.

Looking ahead, providers are hedging their forecasts. Cognizant projects 4% to 6% growth for the rest of the year, while Accenture expects “significantly elevated uncertainty” but raised its full-year outlook to 6% to 7% growth. Capgemini forecasts between -1% and +1% change in revenue, and Infosys revised its guidance to a 1% to 3% increase. In the face of AI-powered delivery, technology executives should maintain pricing rigor but avoid demotivating providers from delivering quality work and investing in better AI-powered delivery models.

AI Is The Earnings Headline

Artificial intelligence is fast becoming the central theme shaping provider strategy, delivery models, and workforce transformation. Q2 earnings calls from major technology service firms revealed a consistent pivot from experimentation to scaled deployment. The following developments stood out:
  • AI bookings are accelerating. Accenture launched a dedicated data and AI business group and recorded $900 million in generative AI bookings last quarter. TCS secured $100 million in AI deals, with clients increasingly demanding “AI-infused productivity” in large contracts.
  • AI is becoming core to client operations. Wipro’s CEO emphasized that “AI is no longer a niche. It’s becoming essential to how businesses operate at scale,” reflecting a broader industry shift toward embedding AI into enterprise workflows.
  • Workforce transformation is underway. TCS associates invested 50 million hours in emerging technology training, while Wipro highlighted reskilling as a strategic priority. Providers are prioritizing talent transformation over layoffs, preparing employees for AI-driven platforms and services.
  • Efficiency is the new growth engine. CEOs across firms stressed the importance of AI-powered productivity — not just for clients, but internally. AI tools are unlocking new revenue pools, compressing delivery timelines, and enabling leaner operating models.
  • Restructuring signals future readiness. While layoffs were not a central theme, firms like TCS and Wipro reported restructuring costs tied to becoming “future-ready,” with AI productivity gains driving changes in workforce composition and service delivery.