IT Q2 Preview: Muted growth, steady margins likely; deal conversion, AI deflation in focus

The IT sector’s second-quarter preview points to a period of muted growth, while margins are expected to remain steady. The outlook places attention on how companies convert deals and how artificial intelligence affects pricing and industry economics.

Deal conversion remains a key focus

With growth expected to be subdued, the conversion of potential deals into completed business is a central issue for the quarter. The preview identifies deal conversion as an area requiring close attention as the sector’s performance takes shape.

AI deflation adds another point of scrutiny

The impact of AI-related deflation is also highlighted in the outlook. The reference to AI deflation signals a focus on how artificial intelligence may influence pricing, although the available material does not provide further detail on its expected scale or effect.

Together, the themes suggest a quarter defined less by rapid expansion than by the durability of margins, the execution of existing opportunities and developments linked to AI.