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TCS AI Revenue Surges Past $3 Billion
8 Oct
Summary
- TCS net profit rose 15% to Rs 13,884 crore in Q2 FY27.
- Annualized AI revenue surpassed $3 billion, reaching $3.1 billion.
- TCS secured deals worth $9.6 billion, including a Porsche partnership.
Tata Consultancy Services (TCS) announced its financial results for the quarter ending September 30, 2026, revealing a robust performance.
For the second quarter of FY27, TCS' consolidated net profit climbed 15% year-on-year to Rs 13,884 crore. This marks a significant increase from the Rs 12,075 crore reported in the same period last year. The company's consolidated revenue from operations grew by 11.2% to Rs 73,188 crore, up from Rs 65,799 crore year-on-year.
Key growth drivers included the Banking, Financial Services, and Insurance (BFSI) sector, manufacturing, and technology services. Notably, TCS' artificial intelligence business showed impressive traction, with annualized AI revenue crossing the $3 billion mark, reaching $3.1 billion. This now accounts for over 10% of the company's total revenue.
TCS also announced a significant Total Contract Value (TCV) of $9.6 billion for the quarter. This includes a five-year strategic partnership with Porsche AG, which involves establishing an AI Mobility Centre of Excellence and the acquisition of Porsche's consulting subsidiary. Another major win was an agreement with Best Buy to transform its Global Capability Center into an AI Capability Center.
The board declared a second interim dividend of Rs 12 per equity share for FY27, payable on October 30, 2026, with a record date of October 14, 2026. TCS' workforce stood at 598,056 employees, with IT services attrition remaining stable at 13.3%.
