Tata Consultancy Services (TCS) reported continued revenue growth in the first quarter of FY27, supported by new artificial intelligence-led transformation projects and steady client demand despite an uncertain global economic environment. The company also announced an interim dividend of ₹12 per share as it highlighted progress in expanding its AI business and securing large enterprise contracts.
Tata Consultancy Services (TCS) has started the 2026-27 financial year with higher revenue and a series of new AI-focused business wins, reflecting continued demand for digital transformation services even as global businesses remain cautious about spending.
For the quarter ended June 30, 2026, the company reported revenue of US$7.624 billion, representing a 2.7% increase from a year earlier and remaining largely unchanged from the previous quarter. Operating margin stood at 24%, while net income reached US$1.46 billion, with a net margin of 19.2%, excluding exceptional items. The board also declared an interim dividend of ₹12 per equity share, with July 15 set as the record date and July 31 as the payment date.
TCS secured total contract value (TCV) of US$9.5 billion during the quarter, including several AI-led transformation engagements. Among the largest was an US$800 million agreement with industrial technology company SKF. The company also signed strategic partnerships with ServiceNow and a Europe-based Fortune Global 50 enterprise, while expanding its AI ecosystem through collaborations with Anthropic and Mistral.
Management said customer demand continues to centre on artificial intelligence, cybersecurity, cloud modernisation and technology platform simplification. The company noted that its annualised AI-related revenue reached US$2.6 billion during the quarter, reflecting continued expansion of its AI business.
Regionally, India recorded the strongest year-on-year constant currency growth at 22.9%, while Continental Europe grew 4.3%. North America, TCS’s largest market, posted 2% annual growth in constant currency terms. Among industry segments, Energy, Resources and Utilities led annual growth, followed by Regional Markets and Life Sciences & Healthcare.
The company’s workforce stood at 593,798 employees at the end of the quarter, with annualised IT services attrition at 13.6%. During the period, TCS completed annual salary revisions for employees and continued investments in AI capabilities and workforce upskilling.
Source:TCS begins FY27 with continued growth; wins multiple AI transformation deals
