Street expects another muted quarter for TCS, with results due post market hours, amid weak revenue growth and client spending caution

Thu 8 Oct 2026

QoQ revenue growth estimate

0.5 to 0.6 percent

Margin estimate

24.2 percent

Margin improvement expected

20 basis points

Bottom line growth estimate

1.5 percent

AI revenue contribution last quarter

8.5 percent

Heard on business television between 12:59:32 - 13:02:32 IST.

• TCS was the one stock still holding up in the green amid the broader market sell-off, with results due post market hours
• Analyst Rema expected another muted quarter, with constant currency revenue growth of about 0.5 to 0.6% quarter-on-quarter
• Clients were deferring non-critical spends and focusing on short-term ROI projects, with AI deflation and productivity benefits, cost takeouts and vendor consolidation deals eating into top line
• Margins were expected to inch up by 20 basis points to 24.2%, aided by reversal of Q1 wage hike impact, though tapered by AI investments
• Bottom line was seen up to 1.5%; AI revenue contribution was about 8.5% of overall top line last quarter, and the company made a large deal acquiring the IT services business of Porsche

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