NIFTY IT soars 3% as upbeat Salesforce guidance lift sentiments; LTM, TCS, Coforge top gainers

NIFTY IT is buzzing on Friday, with broad-based buying across large-cap and mid-cap IT stocks. All the constituents of NIFTYIT traded in the green; LTM shares jumped 4.8%, the most, followed by TCS (+3.6%), HCL Technologies (+3.5%), Coforge (+3.3%), Tech Mahindra (+3.1%), Infosys (+2.8%), OFSS (+2.6%), Persistent (+2.3%), Wipro (+2.1%) and Mphasis (+1.5%). The rally pulled the benchmark NIFTY IT index 3% higher to hit an intraday high of 31,213.

Besides the largecap index constituents, shares of midcap and smallcap IT names like Sagility (+4.4%), Sonata Software (+3.5%), Cyient (+1.7%), Tata Elxsi (+1.6%), and Zensar Technologies (+1.2%) also surged, carrying the momentum higher.

The rally is primarily driven by a buoyant outlook for US-based software and consulting firms after their latest quarterly earnings. Salesforce, a US-based software firm, reported strong results for the Q2 of 2026 and raised the full-year guidance for 2027.

Salesforce Q2 earnings and guidance

Salesforce reported 11% growth in its Q2 2026 revenue at $11.35 billion, with current performance obligations of $33.4 billion, up 14% YoY against the consensus of $33.2 billion. The AI integration led the heavy lifting for Salesforce as Agentforce and Data Cloud annual recurring revenue reached $3.9 billion, up 210% YoY. Agentforce alone led the revenue of $1.5 billion in ARR, up 20% YoY

FY27 guidance

The company raised its full-year guidance by $200 million to a range of $46.1 billion to $46.4 billion, up from $45.9 billion-$46.1 billion guided earlier in May. Additionally, the Q3 revenue guidance was raised in the range of $11.4 billion to $11.5 billion.

Post the robust earnings and improved guidance, shares of Salesforce surged over 22% on Thursday, erasing its YTD slump in a single-day move.

US software stocks improve the outlook

Besides Salesforce, ServiceNow also raised its revenue guidance for the year. The company now expects FY26 subscription revenue to be in the range of $15.76 billion to $15.78 billion. Constant currency growth is also expected to improve to 21%, up from 20% guided earlier.

Why Salesforce buoyant outlook matters for Indian IT?

Indian IT companies are majorly dependant on Global System Integrators (GSI) like Salesforce, Servicenow,SAP, Snowflake.Everytime these GSIs add new enterprise customers for AgenticAI platforms, it creates a pipeline of contract for Indian IT companies like TCS, Infosys, HCL Tech, Tech Mahindra and others.