Tata Consultancy Services Limited Q2 2027 Earnings Recap

TCS shares rose 3.6% after the company reported 2.8% year-on-year constant-currency revenue growth, stable 24% operating margins and a $9.6 billion quarterly TCV. The positives came alongside subdued sequential growth and management’s view that demand remains selective, with discretionary programs lacking near-term value still under scrutiny.

Key Takeaways

• Constant-currency revenue increased 0.5% sequentially and 2.8% year on year; reported revenue was ₹73.2 thousand crores.
• Operating margin held at 24% sequentially, with currency gains and operating leverage partly offsetting higher investment in strategic initiatives, hiring and bench capacity.
• Quarterly TCV was $9.6 billion, excluding the Porsche and Best Buy deals.
• Growth was uneven across markets and segments: BFSI rose 2.3% sequentially in constant currency, while manufacturing and technology services each grew 3.1%; all international markets grew sequentially.
• Annualized AI revenue reached $3.1 billion and exceeded 10% of overall revenue, while management said the demand environment had not materially changed and discretionary programs without near-term value remained under scrutiny.