Archive · 9 Oct 2026
TCS Q2 Profit Rises 15% as AI Revenue Tops $3 Billion
Tata Consultancy Services, or TCS, shared its results for the second quarter of FY27.
It earned ₹13,884 crore in profit and ₹73,188 crore in revenue.
Both were higher than a year earlier.
TCS said its annualized revenue from AI work reached $3.1 billion, more than one-tenth of its revenue.
It signed contracts worth $9.6 billion in total, including deals involving Porsche and Best Buy.
Its operating margin stayed at 24%.
TCS added workers and ended the quarter with 598,056 employees.
The company also announced a dividend of ₹12 for each share.
Analysts questioned whether AI work is creating new revenue or replacing some traditional work.
TCS reported Q2FY27 net profit of ₹13,884 crore, up about 15% year over year, and revenue of ₹73,188 crore, up 11.22%.
Annualized AI revenue rose to $3.1 billion from $2.6 billion in the previous quarter, representing more than 10% of overall revenue.
Total contract value was $9.6 billion, compared with $9.5 billion in the prior quarter; TCS highlighted deals with Porsche and Best Buy.
Operating margin was 24%, unchanged sequentially; management cited ongoing investment and acquisition-related challenges, while an analyst raised concerns about margin pressure.
TCS added 4,258 employees net, onboarded 10,000 freshers, and reported a workforce of 598,056 and attrition of 13.3%; its board declared a ₹12-per-share interim dividend.
- Who
- Tata Consultancy Services (TCS), its executives, and analysts commenting on its results.
- What
- TCS reported Q2FY27 financial results, AI revenue, contract bookings, workforce figures, and a second interim dividend.
- When
- The quarter ended September 30, 2026; results were reported on October 8, 2026.
- Where
- India and TCS's international markets.
- Why
- The reports cover TCS's quarterly performance and business outlook.
Management's view
Analyst concerns
AI and growth
Management's view
TCS executives said demand for AI-native solutions and AI-led transformation was accelerating, and the CEO expressed confidence in continued growth momentum.
Analyst concerns
Mirae Asset Sharekhan analysts questioned whether AI was adding new revenue or replacing traditional work, pointing to 0.5% quarter-on-quarter constant-currency growth.
Margins and outlook
Management's view
TCS said AI deals had higher-than-average margins and that it would continue investing for the future; management also described a healthy pipeline and client demand for measurable outcomes.
Analyst concerns
Everest Group analyst Aarushi Sharma said the outlook depended on identifiable growth catalysts rather than a broad demand recovery, and noted pressure on margins from pricing and investment-related costs.
- Revenue
- ₹73,188 crore, up 11.22% year over year
- Net profit
- ₹13,884 crore, up about 15% year over year
- Operating and net margins
- 24% and 19%, respectively
- Total contract value
- $9.6 billion, versus $9.5 billion in the previous quarter
- Annualized AI revenue
- $3.1 billion, up from $2.6 billion in the previous quarter
- Workforce
- 598,056 employees; 4,258 net additions and 10,000 freshers onboarded during the quarter
- Attrition
- 13.3%
- Interim dividend
- ₹12 per share; October 14, 2026, record date; payment scheduled for October 30, 2026
