Summary:
TCS reported a steady Q1 FY27 performance with a 5% year-on-year rise in net profit to ₹13,420 crore and a 14% increase in revenue to ₹72,275 crore. The company also declared an interim dividend of ₹12 per share, while strong deal wins worth $9.5 billion and growing AI revenues highlighted continued momentum in digital transformation services.
Tata Consultancy Services share price was trading at ₹2,049.50 as of market close on July 9, 2026, down 0.39% for the day. The stock touched an intraday high of ₹2,065 and a low of ₹2,016. Trading volume stood at 37.90 lakh shares against the 30-day average of 56.20 lakh shares, with the stock closing under mild pressure on the day of the earnings announcement. Results were declared after market hours.
Quarterly Earnings at a Glance
India's largest IT services company by revenue reported consolidated net profit of ₹13,420 crore for the quarter ended June 30, 2026. This marks a 5% YoY increase compared with ₹12,819 crore earned in the same quarter last year. On a sequential basis, profit slipped 3% from ₹13,784 crore in Q4 FY26.
Revenue from operations climbed 14% YoY to ₹72,275 crore from ₹63,437 crore in Q1 FY26. Sequentially, revenue increased 2% over Q4 FY26's ₹70,698 crore. In constant currency terms, revenue rose 3% YoY and was broadly flat sequentially. The operating margin for the quarter held at 24.0%.
Dividend Announced; Record Date Set for July 15
The board of directors approved an interim dividend of ₹12 per equity share, with each share carrying a face value of ₹1. Shareholders whose names feature in the company's register of members or in depository records as beneficial owners as on July 15, 2026, the record date will qualify for the payout. Payment is scheduled for July 31, 2026.
Deal Wins and AI Business
Total contract value (TCV), a measure of the total worth of contracts signed during a quarter, came in at $9.5 billion for Q1 FY27. The headline win was a $800 million deal with SKF, a global industrial company, covering enterprise-wide digital transformation with AI deployed as a central operational backbone. Other notable wins included a multi-million dollar agreement with ServiceNow for AI adoption at scale, a contract with a Fortune Global 50 European firm for HR transformation, and an engagement with a North American utility company for AI-driven IT overhaul.
TCS's annualised AI revenue reached $2.6 billion in Q1 FY27, up 14% QoQ, as more clients moved from exploratory AI pilots to full-scale deployment. The company entered into new partnerships with Anthropic and Mistral during the quarter. Under the Anthropic arrangement, TCS will establish a dedicated business unit for work involving Claude models and will extend access to 50,000 employees across engineering, finance, legal, marketing, and sales. The company also became the first global systems integrator for Mistral Forge, which builds AI models trained on enterprise-specific data.
Segment and Geography Highlights
Banking, financial services and insurance (BFSI) remained the largest business segment, contributing 32% of revenue. In constant currency terms, BFSI grew 2% YoY. The regional markets vertical delivered the strongest growth at 9% YoY. India was the fastest-growing geography, expanding 23% YoY in constant currency. The Middle East and Africa business grew 8% YoY, while the consumer business declined 1% YoY. North America, which contributed 48% of total revenue, grew 2% YoY in constant currency.
The workforce stood at 5,93,798 as of June 30, 2026. The last twelve months (LTM) attrition rate in IT services was 14%.
What the Management Said
K Krithivasan, Chief Executive Officer and Managing Director, stated that the company delivered continued growth in a challenging global environment, pointing to the strong order book, steady client additions, and the scaling of AI revenues as key factors during the quarter.
Aarthi Subramanian, Executive Director, President and Chief Operating Officer, noted broad-based growth across multiple service lines. She attributed the quarter's deal momentum to the company's dual focus on AI-led operational efficiency and outcome-driven engagements.
Samir Seksaria, Chief Financial Officer, highlighted that annual wage increments were rolled out during Q1. He noted that the company remained committed to disciplined execution and reinvesting in AI capabilities to support long-term competitiveness.
The workforce stood at 5,93,798 as of June 30, 2026. The last twelve months (LTM) attrition rate in IT services was 14%.
Conclusion
TCS delivered a steady performance in Q1 FY27, with consolidated revenue rising 14% YoY to ₹72,275 crore and net profit increasing 5% YoY to ₹13,420 crore. Total deal wins of $9.5 billion and an annualised AI revenue run rate of $2.6 billion reflected continued demand for technology transformation across industries. The board's ₹12 per share interim dividend, with a record date of July 15, 2026, adds a near-term shareholder return element to the quarter's headline numbers.
