The Resurgence in Global Tech Spending: Is Infosys a Strategic Bet for 2026?

The global technology sector is experiencing a renaissance in 2025, driven by a surge in artificial intelligence (AI) adoption and a recalibration of corporate strategies to navigate geopolitical uncertainties. According to Gartner, global IT spending is projected to grow by 7.9% in 2025, reaching $5.43 trillion, with data center investments expanding by 42.4% due to the rise of generative AI (GenAI). Deloitte corroborates this trend, forecasting a 9.3% increase in IT spending, fueled by double-digit growth in software and data center segments. Yet, this optimism is tempered by macroeconomic headwinds and geopolitical tensions, which are reshaping how corporations allocate capital and manage risk.

AI as a Catalyst for Growth

AI, particularly agentic AI, is emerging as a cornerstone of technological innovation. McKinsey highlights its transformative potential across robotics, bioengineering, and energy systems, while agentic AI-autonomous systems capable of executing complex tasks-is gaining traction despite lower current investment levels. For enterprises, the challenge lies in balancing AI's promise with measurable returns. As noted by a 2025 report from the World Trade Web, corporations are adopting a "strategic pause" on new spending, prioritizing projects with clear ROI and governance frameworks.

Infosys, a global IT services leader, is positioning itself at the intersection of AI innovation and risk mitigation. The company has doubled down on AI-driven governance, emphasizing responsible AI ecosystems as a competitive differentiator. A 2025 survey by the Infosys Knowledge Institute reveals a critical gap: many boards struggle to hold management accountable for AI value delivery, underscoring the need for transparent frameworks. By reframing responsible AI as a value driver rather than a compliance burden, Infosys is helping clients build trust and investor confidence in AI systems.

Geopolitical Risks and Strategic Resilience

Geopolitical competition over critical technologies is intensifying, with nations and corporations prioritizing self-sufficiency in chip manufacturing and localized production. For Infosys, this shift has spurred investments in global capability centers (GCCs), which are evolving from cost centers to innovation hubs. At least 20% of new GCC investments in 2025 adopted a "hub-plus-one" model, diversifying operations across multiple geographies to mitigate risks from trade disruptions or regulatory shifts.

The company's AI tools are also being leveraged to simulate geopolitical risks and optimize supply chains. For instance, Infosys's predictive analytics platforms help clients forecast tariff impacts and adjust sourcing strategies in real time. This capability is particularly valuable in sectors like semiconductors, where supply chain fragility is exacerbated by geopolitical tensions.

Financial Performance and AI-Driven Innovation

Infosys's fiscal year 2025 (FY25) results reflect its strategic focus on AI and resilience. The company reported revenue of $19.28 billion, with a 4.2% constant currency growth and a robust free cash flow of $4.1 billion. Notably, over half of its $11.6 billion in Total Contract Value (TCV) during FY25 came from new clients, signaling strong market confidence.

On the innovation front, Infosys has launched Infosys Topaz Fabric, an AI-centric stack designed to streamline IT operations and enhance cybersecurity and HR functions. Collaborations with Amazon Web Services and Cognition further underscore its commitment to AI-driven engineering and industry-specific solutions. Agentic AI is also being integrated into source-to-pay (S2P) processes, automating supplier risk assessments and procurement workflows.

Outlook for 2026: Caution and Opportunity

Despite these strides, Infosys has adopted a cautious outlook for FY2026, guiding for 0% to 3% constant currency revenue growth. This reflects broader industry challenges, including labor shortages and regulatory complexities. However, the company's focus on AI governance, supply chain resilience, and diversified GCC operations positions it to capitalize on long-term trends.

For investors, the question is whether Infosys can sustain its momentum amid a slowing global economy. Its ability to deliver measurable value from AI initiatives-such as agentic systems and predictive analytics-will be critical. While the near-term outlook is tempered, the company's strategic alignment with AI-driven demand recovery and geopolitical risk mitigation makes it a compelling, albeit cautious, bet for 2026.