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Largecap IT as value play gets a reality check as BNP Paribas flags AI and earnings risks
Economy
Published on 2 May 2026
Weak FY27 guidance and stalled spending strain the value case
BNP Paribas analyst Kumar Rakesh warns that the IT sector’s “value” narrative may be overstated. He points to weak FY27 guidance, AI-driven disruption, and stalled client spending as key headwinds. Buybacks and dividends can cushion sentiment, but elevated earnings risks mean investors may need to be far more selective when picking largecap IT stocks.
- BNP Paribas questions the IT sector value narrative
- Weak FY27 guidance is a major near term concern
- AI disruption and stalled client spending hurt growth visibility
- Buybacks and dividends help, but earnings risk stays high
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times