Another reason is to signal confidence, as management may believe the stock is undervalued and, by buying it back, communicates that it sees its own shares as a strong investment, which can reassure investors, according to analysts.

Buybacks are also a flexible way to return excess cash to shareholders. Unlike dividends, they are not viewed as a long-term commitment and can be adjusted more easily, analysts said.

“We expect revenue from our IT services business segment to be in the range of $2,597 million to $2,651 million for the June quarter of FY27. This translates to sequential guidance of (-)2.0% to 0% in constant currency terms,” the company said.  Srini Pallia, CEO and Managing Director, said, “advancements in AI are reshaping client priorities and creating new opportunities for us to partner more deeply to deliver value-driven outcomes. To strengthen our position in an AI-first world, we are pivoting to a services-as-a-software model through the AI native business & platforms unit.”