Indian IT giants like Tata Consultancy Services (TCS), Infosys, HCL Technologies, Wipro, and Tech Mahindra are set to declare their third-quarter (Q3 FY26) earnings starting the week of January 12, 2026. However, the sector is under considerable pressure from recent changes to the H-1B visa program in the United States, a critical market for Indian IT. A Presidential Proclamation issued on September 19, 2025, introduced a significant additional payment of $100,000 for new H-1B petitions for workers outside the US, effective September 21, 2025. Furthermore, the Department of Homeland Security announced a final rule on December 23, 2025, implementing a weighted lottery system for H-1B registrations, which will favor higher-skilled and higher-paid individuals, effective February 27, 2026, for the FY27 cap season. These policy shifts, alongside new requirements for social media vetting during H-1B visa stamping leading to delays and cancellations, are creating substantial visa-related headwinds for Indian IT firms. Analysts anticipate that these tighter norms will impact companies' operational costs and talent strategies, pushing them towards increased local hiring in the US and expanding offshore delivery centers in India. Global brokerage Bernstein has already downgraded Indian equities to 'Neutral,' partly citing the impact of the H-1B fee hike. Beyond visa concerns, the Q3 earnings are expected to be modest due to seasonal factors like widespread furloughs, lower client utilization, and continued cautious discretionary spending by US clients amidst macroeconomic uncertainties. While large-cap firms may see muted sequential revenue growth, some mid-cap companies and those with strong software businesses like HCLTech are projected to perform relatively better. Investor focus will also be on the progress and investments in AI-led technologies, which are increasingly viewed as the next major growth engine for the IT sector, providing a long-term positive outlook despite immediate challenges.