TCS kicks off FY27 with a bang! AI deals drive strong growth momentum
Mumbai/IBNS: Tata Consultancy Services has reported its consolidated financial results according to IFRS, for the quarter ending June 30, 2026.
Highlights of the Quarter Ended June 30, 2026
- Revenue at US$ 7,624 million, Flat QoQ, +2.7% YoY
- Operating Margin at 24.0%*
- Net Income at US$ 1,460 million*| Net Margin at 19.2%*
- Net Cash from Operations at US$ 1,310 million i.e. 93% of Net Income
- Workforce strength: 593,798; LTM Attrition (IT Services): 13.6%
- Dividend per share: ₹12 per share | Record date 15-Jul-2026 | Payment date 31-Jul-2026
K Krithivasan, Chief Executive Officer and Managing Director, said “Q1 FY27 reflects continued growth momentum and the strength of our strategic positioning, despite geopolitical and macro-economic headwinds.
“We delivered a strong order book of $9.5 billion, including a marquee AI-led transformation deal with SKF, while continuing to add clients across key revenue bands and scaling our AI business to a $2.6 billion annualized revenue run rate. As customers accelerate investments in AI, modernization, cybersecurity, sovereign cloud and platform simplification, our strong deal conversion, improving client mining and expanding ecosystem partnerships position TCS well to translate opportunity into sustained growth”.
Aarthi Subramanian, Executive Director - President and Chief Operating Officer, said, “Q1 was characterized by strong growth across several services. We won multiple AI-led transformation deals with our dual commitment to AI-led optimization as well as innovation-led outcomes.
“These wins validate our approach to AI-led efficient ITOps, accelerated Software Engineering and Modernization, AI-first process redesign and implementation of SaaS solutions and Autonomous GBS. We signed strategic partnerships with Anthropic and Mistral expanding our AI ecosystem”.
Samir Seksaria, Chief Financial Officer, said, “In Q1, we rolled out annual wage hikes, strengthened our partnership ecosystem, and targeted investments to enhance long-term competitiveness. We remain focused on building, acquiring, or partnering for AI-led capabilities while maintaining disciplined execution, industry-leading profitability and return ratios”.
Sudeep Kunnumal, Chief HR Officer, said “This quarter, we completed annual salary increments for all associates globally and aligned salary structures with the new India Labour Code requirements. We continue to invest in AI infrastructure, next-generation skill development platforms, to enable our people to be future-ready, while fostering a workplace where every associate feels safe, valued, trusted and empowered to grow”.
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