This study explores the role of female leadership in shaping firm performance within the IT sector through a systematic literature review. A total of 151 peer-reviewed articles published between 2016 and 2025 were analysed using a structured screening process based on PRISMA guidelines. The findings indicate that female leadership contributes positively to organizational outcomes, particularly in enhancing innovation, improving governance, and strengthening decision-making processes. Recent evidence also suggests that firms with higher gender diversity demonstrate better financial and non-financial performance outcomes. However, despite policy efforts and increasing awareness, women remain underrepresented in senior leadership roles, especially in technology-driven industries. The study highlights a growing research trend after 2020, reflecting the rising importance of diversity in corporate strategy. It concludes that gender diversity should be viewed as a strategic asset rather than a compliance requirement. The paper also identifies key research gaps and provides directions for future studies focusing on qualitative insights and long-term performance impact.