TCS posted in-line Q2 results with AI revenue rising sharply, but margin pressure from higher external consultant costs and weak deal wins

Fri 9 Oct 2026

CC growth

0.5 percent

AI revenue this quarter

3.1 billion dollars

AI revenue previous quarter

2.6 billion dollars

AI revenue share

10 percent of revenue

External consultant fee rise

11 percent QoQ

Heard on business television between 07:45:33 - 07:48:33 IST.

• Constant currency growth came in at 0.5%, within the estimated 0.5-0.8% range and better than previous quarter
• AI revenue rose to 3.1 billion dollars from 2.6 billion, now forming about 10% of overall revenue versus 8.6% previously, up 90% QoQ
• External consultant fees rose 11% QoQ, forming 7.1% of Q2 revenue and pressuring margins
• Net headcount addition of about 4,200 employees for a third consecutive quarter, following 9,000 added in Q1, signaling demand pent-up
• Deal wins came in at 9.6 billion dollars versus estimate of 10 billion; revenue up 1.2%, EBIT up 1.3%, margins grew only 2 bps versus expected 42 bps, net profit up 4.3%
• BFSI, manufacturing and tech segments grew well, but original/other markets segment fell 5.8%, and Indian geography revenue fell 10.8%

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