The deal pipeline of technology stocks has been in focus. After a mixed Q4 show, April seems to be rather disappointing for the IT services players. As per the latest report by BNP Paribas, deal-wins have seen a significant slowdown in April compared to March. They further stated that most deal wins were related to Digital transformation, AI and Cloud transformation.
Infosys, IBM and Cognizant at 3 each closed the most deals, followed by TCS and Accenture (2 each). LTIMindtree and Atos also signed one deal each in April.
Clients have been increasingly cautious amidst the uncertainty, leading to a slowdown in decision-making and so, a number of discretionary and new projects have been put on hold.
Slowdown in deal signings
According to BNP Paribas, deal-wins in April 2025 saw a slowdown compared to March, on global macroeconomic uncertainty. “The 3-month rolling sum of deal signings, which is a strong one-quarter lead indicator of deal TCV, also declined,” said the brokerage firm.
In terms of regions, deal signings in North America remained steady MoM but below last year’s trend. Deal signings in Europe dropped sharply on-month, pulling down the overall momentum.
Now in terms of verticals, BFSI continued to perform well and saw the most deal-win announcements, followed by Technology in the month of April. Manufacturing deal signings held steady on-month. Infosys, IBM and Cognizant (3 each) led the deal wins in Apr-25, followed by TCS and Accenture (2 each), it stated.
Q4 deal pipeline for tech companies
The March quarter or Q4FY25 had been reasonably encouraging for select players. HCLTech recorded a 43 per cent increase in deal wins quarter-on-quarter. TCS reported a 20 per cent sequential rise in orders, totaling $12.2 billion. Infosys secured large deals worth $2.6 billion, and Wipro’s total contract value neared $4 billion.
For better clarity, here is a summary of deal wins:
Maximum deal wins in BFSI, North America dominates as deal-win hotspot
A quick scan of the data from BNP Paribas indicates that the deal wins were led by BFSI at 6, followed by Technology (4) and Manufacturing (2) in April. Among geographies, deal-win announcements continued to be dominated by North America at 6, Europe at 5 saw a sharp decline compared to Mach; RoW remained healthy (4).
Generative AI remains the key theme
Technology companies are driving GenAI innovation through strategic partnerships and targeted solutions. BNP Paribas pointed out that TCS launched its GenAI and Agentic AI-powered TCS MasterCraft to facilitate the modernization of legacy systems. HCL Tech rolled out a suite of Agentic AI solutions in collaboration with Google Cloud. Capgemini also teamed up with Google Cloud to deliver AI-driven customer experiences, while Infosys deployed its AI-enhanced Infosys Topa.