Indian IT companies anticipate a rebound in calendar year 2026, despite a muted December quarter (Q3FY26) due to seasonal furloughs and wage hikes. Motilal Oswal's report suggests investors will focus on early signals for CY26 client budgets and the evolving artificial intelligence spending cycle. While Q3 growth is expected to be subdued, with large-caps seeing minimal sequential revenue growth, mid-caps may outperform. The brokerage highlights cautious client spending on large transformation programs, with budgets expected to firm up around January 2026.