From Financialexpress · Urvi Malvania · · 40s
TCS Growth Recovery Gradual as Deal Wins Moderate
TCS reports steady revenue but AI investments and weaker deals slow profit growth.
In brief
TCS reports steady revenue but AI investments and weaker deals slow profit growth. Tata Consultancy Services saw gradual revenue growth with AI services rising but deal wins and investments pressuring margins. Originally reported by Financialexpress.
Q2FY27 Revenue
Tata Consultancy Services reported revenue of Rs 73,188 crore in Q2FY27, up 11.2% year-on-year.
Deal Wins Moderate
Total contract value of deals won stood at $9.6 billion, down 4% year-on-year.
AI Services Growth
AI services revenue crossed $3.1 billion, up 19.2% sequentially from $2.6 billion.
Margin Pressure
Operating margin declined 120 basis points year-on-year despite flat sequential performance.
The takeaway
Tata Consultancy Services saw gradual revenue growth with AI services rising but deal wins and investments pressuring margins.
