TCS, Infosys, Cognizant, Wipro & HCLTech among 8 cos, including Microsoft, suspended from PERM

Vice President JD Vance suspended Microsoft from the H-1B visa program, accusing it of laying off US workers while hiring foreign labor. Microsoft has not responded. President Trump honored Microsoft CEO Satya Nadella and other tech leaders with National Medals, praising their contributions to technology and innovation.

The US suspended Microsoft, Adobe, and other IT firms from a key green-card program, citing alleged abuse. Vice President Vance accused Microsoft of laying off US workers while hiring foreign labor. The suspension also covers Cognizant, Infosys, and others. Additionally, the administration is probing nine universities, including Harvard and Yale, for potential visa misuse. Microsoft and others deny wrongdoing.

TCS shares rose 5.2% after reporting a 20% increase in annualized AI revenue to $3.1B for Q2, despite sluggish overall growth. Other Indian IT stocks like Wipro, Infosys, and HCL Tech also gained. TCS's total contract value was $9.6B, down from $10B a year earlier.

Indian stock markets recovered on October 9, 2026, with Sensex and Nifty rising 0.59% and 0.65% respectively, driven by gains in IT stocks like TCS. TCS reported a 15% YoY net profit increase to ₹13,884 crore and 11.22% revenue growth to ₹73,188 crore, boosting its shares by 3.5%. Other IT stocks also gained, with the Nifty IT index up 2-2.9%. The rally follows a sharp sell-off on October 8, but risks include high oil prices and foreign investor outflows.

Microsoft defended its H-1B hiring practices, stating 80% of its 6,000 H-1B applications were for existing employees. The US Labor Department suspended Microsoft and Adobe from the PERM program due to investigations. Shares of Microsoft fell 1.3%, while other tech firms saw mixed reactions. The suspension may impact green card applications for Indian professionals.

The US suspended Microsoft, Adobe, and major Indian IT firms from a green-card program, alleging abuse. Microsoft was accused of hiring foreign workers while laying off Americans. The Labor Department also opened probes into top universities, including Harvard and Yale, for alleged visa misuse. Microsoft denied wrongdoing, stating it pays H-1B employees equally. The suspensions may impact hiring practices and visa policies.