The June 2017 quarter performance of Infosys was marginally better than that of its largest peer, Tata Consultancy Services (TCS), in terms of higher reported and constant currency dollar revenue growth and operating margin. However, each of the companies reported a sequential drop in the headcount reflecting rationalization of the workforce at a time when topline growth is hard to come by.At $2,651 million, revenue of Infosys grew by 3.2 per cent sequentially in the June quarter while TCS grew it by 3.1 per cent to $4,591 million. The latter reported a sharp drop of 230 basis points sequentially in the operating margin at 23.4 per cent due to wage increase and visa costs. For Infosys, the margin at 24.1 per cent fell by 50 basis points from the previous quarter.The divergence in the performance of the country's top two software exporters was visible in their share prices. During the Friday morning trading session, Infosys rose by over 2 per cent before shading some of the gains later on while TCS lost as much.However, TCS fared better in terms of client addition in the high-spend brackets. It added one client each in the above $50 million and $100 million brackets. Infosys, on the other hand, reported one client less in the above $100 million category while the $50 million and above bracket did not show any change in the client number.Infosys expanded its dollar revenue guidance for FY18 to 7.1-9.1 per cent growth from earlier expectation of 6.1-8.1 per cent growth. But, this is largely due to the currency variation and hence does not reflect improvement in business climate. This is clear from the fact that the constant currency revenue guidance was left unchanged at 6.5-8.5 per cent.The management commentaries of each of the companies reflect caution in the short term and focus on achieving stability in the medium term. For their stocks , it means a few more quarters of subdued performance.