TCS posted in-line Q2 results with margin pressure and muted deal wins; analyst Parag Thakkar says valuations largely price in the negatives but growth remains anemic

Fri 9 Oct 2026

International revenue growth

1.2 percent

India revenue degrowth

10 percent

AI annualized revenue

3 billion dollars

AI revenue share

10 percent of revenue

North America growth

0.4 percent

Heard on business television between 08:34:33 - 08:37:33 IST.

• Parag Thakkar said TCS outlook unchanged but margin pressure now visible due to reinvestment/deflation.
• He said at current valuations most negatives are priced in, but growth expectations should stay low at 4-5% for the year.
• Noted US tech stocks (Cognizant +5%, Accenture +6%, Infosys ADR +2.8%) rallied after OpenAI guidance cut, aiding sentiment.
• Said sector growth this quarter could be lowest in three years, questioning how long a rebound would take.
• TCS management said international revenue grew 1.2%, offset by a 10% degrowth in India due to lumpy revenue recognition; broad-based growth seen across verticals except consumer and communications; AI revenue crossed $3 billion annualized, about 10% of revenue, up from 1.8% at analyst day.

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.