Tata Consultancy Services reported revenue of approximately $7.56 billion (₹73,188 crore) for the second quarter of fiscal 2027, up 11.2% year-over-year and 1.3% sequentially in reported currency. Revenue increased 0.5% quarter-over-quarter in constant currency.
International revenue rose 1.2% sequentially in constant currency, led by banking, financial services and insurance, manufacturing, and technology and services.
BFSI revenue increased 2.5% quarter-over-quarter in constant currency, while manufacturing and technology and services each grew 3.1%.
TCS said annualized AI revenue reached $3.1 billion during the quarter, exceeding 10% of total revenue for the first time.
The company booked $9.6 billion of total contract value during the period.
Operating margin was 24%, while net profit totaled approximately $1.43 billion (₹13,884 crore), representing a net margin of 19%.
Net cash generated from operations was about $1.47 billion (₹14,190 crore), or 102.2% of net income.
TCS ended the quarter with 598,056 employees, while trailing 12-month attrition in IT services was 13.3%.
The company declared a dividend of about $0.12 (₹12) per share, with a record date of October 14, 2026, and a payment date of October 30.
Growth was broad across major international markets. The U.K. rose 3.5% sequentially in constant currency, Asia-Pacific rose 2%, Latin America rose 4.3%, and North America rose 0.4%. India fell 10.3% sequentially but remained 6% higher year-over-year.
TCS also announced several major strategic transactions and client engagements during the quarter.
The company entered a five-year strategic partnership with Porsche AG that includes establishing an AI Mobility Centre of Excellence focused on manufacturing, engineering, operations, and customer experience.
As part of that relationship, a TCS subsidiary plans to acquire 100% of MHP Management- und IT-Beratung, Porsche’s Germany-based management and IT consulting subsidiary. The transaction remains subject to regulatory approvals.
TCS also agreed to transition Best Buy’s Global Capability Center in India to TCS and transform it into an AI Capability Center. The initiative will combine Best Buy’s retail expertise with TCS’s technology, engineering, AI, and global delivery capabilities.
Honeywell Technologies selected TCS as its global end-to-end SAP S/4HANA business transformation partner, while Aareal Bank entered into a long-term strategic partnership with TCS covering data centers, cloud platforms, workplace services, cybersecurity, and infrastructure management.
TCS also formed a strategic partnership with Vodafone Business, VodafoneThree’s enterprise arm, to support digital modernization for U.K. businesses.
The company continued expanding its AI infrastructure during the quarter by launching its Industrial Autonomy & Engineering Lab Lights-Out Factory in Pune and an Autonomous Engineering Lab powered by NVIDIA in Bengaluru.
TCS and Google Cloud also established a Gemini Experience Center in Mexico City, the company’s second in Latin America and ninth globally, while another Gemini Experience Center focused on consumer businesses opened in Kolkata.
Additional AI initiatives included a 4,500-square-foot AI-native Creative Engineering Studio in London and TCS ADD AgentHub, an enterprise agentic AI platform designed for clinical trials and pharmacovigilance.
Research and development activity also remained substantial. As of September 30, TCS had filed 10,044 patent applications and received 5,885 patents. Its AI-related portfolio included 2,176 cumulative patent applications and 649 granted patents.
KEY QUOTES:
“We are pleased with the broad-based growth in all our international markets and most industry segments. This quarter we announced two unique deals with Porsche and Best Buy which represent a new category of transformation partnerships. Together with our clients, we are building repeatable value platforms that will industrialize AI at scale.”
K Krithivasan, CEO and Managing Director of TCS
“AI momentum remained strong, with annualized AI revenues now exceeding $3 billion. Demand for delivering business outcomes with AI-native solutions, AI-led transformation of enterprise systems and autonomous GBS, continues to accelerate.”
Aarthi Subramanian, Executive Director, President and COO of TCS
“We continued to strengthen our capabilities through acquisitions, partnerships and investments in niche talent. In addition, we maintained strong cash conversion and industry-leading profitability, along with our focus on creating sustainable long-term value for all stakeholders.”
Samir Seksaria, CFO of TCS
“We continue to build a future-ready workforce through upskilling our employees and hiring top talent. Investments in learning and critical skills drove a 17% sequential increase in learning hours to 17.1 million.”
Sudeep Kunnumal, Chief HR Officer of TCS
