Tata Consultancy Services532540Information technology services
TCS Q2 results seen as largely in-line but stock reacted positively on improving international revenue growth and rising AI contribution
- International revenue growth QoQ
- 1.2 percent
- Overall revenue growth QoQ
- 0.5 percent
- India business decline QoQ
- 10 percent
- AI revenue size
- $3.1 billion
- AI revenue growth QoQ
- 20 percent
Heard on business television between 11:04:29 - 11:07:29 IST.
- International revenue grew 1.2% quarter-on-quarter while overall revenue growth was just 0.5% due to a 10% India business decline from project deferral.
- AI now contributes about 10% of revenues ($3.1 billion), growing 20% quarter-on-quarter with higher gross margins than core business.
- Management said clients are shifting from isolated AI use cases to human-plus-AI models, especially in BFSI, manufacturing and healthcare.
- Headcount rose for a third straight quarter with 14,000 freshers hired in Q1 and 10,000 planned for Q2, seen as a demand signal.
- Margins stayed flat, missing street expectations, as the company prioritised growth investments; long-term margin aspiration of 26-28% remains intact, with some near-term headwinds from seasonality and the MHP acquisition.
- Analyst Sandeep Shah said results were in line with expectations, noted international markets (94% of revenue) grew 1.2% versus flat last quarter, and expects TCV to improve further in H2 as Porsche and Best Buy deals are yet to be included, giving a better exit into the next financial year.
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Source: Live TV News Channel · 9 Oct 2026
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