Tata Consultancy Services532540IT services
TCS Q2 results analysed: margins flat at 24%, missing expectations despite healthy deal wins and AI revenue growth
- Operating margin
- 24 percent
- Prior quarter margin decline
- 130 basis points
- Deal wins this quarter
- 9.6 billion dollars
- Deal wins prior quarter
- 9.5 billion dollars
- AI revenue share
- 10 percent
Heard on business television between 16:10:11 - 16:13:11 IST.
- Margins stayed flat at 24% versus expectations of sequential improvement, unlike historical Q2 trend of recovery after Q1 wage-hike led declines of 130 basis points.
- Analyst noted rising fees paid to external consultants as a percentage of revenue contributed to the margin miss.
- Deal wins were healthy at $9.6 billion versus $9.5 billion in the prior quarter.
- AI revenue rose 20% sequentially to about $3.1 billion annualised, now 10% of overall revenue.
- Headcount rose by over 4,200 for the third consecutive quarter; growth of 3.5% was in line but unexciting given stock down over 30% YTD.
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Source: Live TV News Channel · 8 Oct 2026
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