New Delhi, May 20 -- The Indian IT services sector witnessed mixed performance in the fourth quarter of FY26, with mid-tier companies outperforming large-cap firms as artificial intelligence (AI)-led transformation and macroeconomic uncertainty reshaped client spending trends, according to a report by UBS.

The report stated that after two quarters of earnings beats, the sector saw more misses than expected in Q4FY26, particularly among large-cap IT companies.

It stated, "Clear divergence between mid-tier and large-cap companies... Q4FY26 prints were mixed, with more misses than beats."

According to UBS, companies such as Infosys, HCL Technologies and Wipro reported weaker-than-expected performances and issued lower revenue growth guida...