India-based IT services giant Tata Consultancy Services (TCS: NSI) on Thursday reported revenue of USD 7.62 billion in its fiscal first quarter ended 30 June 2026, up 3.2% on a constant currency (CC) basis.
Revenue was up 0.4% quarter-on-quarter (CC) and flat on a reported basis.
“Q1 FY27 reflects continued growth momentum and the strength of our strategic positioning, despite geopolitical and macroeconomic headwinds,” K Krithivasan, CEO and managing director, said in a press release.
TCS, which ranks as the world’s second-largest provider of IT consulting and services, reports earnings in both US dollars and Indian rupees.
In Indian rupees, revenue was up 13.9% year-on-year. On a quarterly basis, revenue rose 0.4% (CC) to reach INR 722.75 billion.
According to Reuters, this beat analysts’ average estimate of INR 720.30 billion, according to data compiled by LSEG.
Meanwhile, net income, which excludes exceptional items, totalled USD 1.46 billion, down 2.2% from the previous year. Net margin stood at 19.2%.
At the same time, gross margin totalled USD 3.0 billion, up 3.9% from the prior-year period.
Across geographies, and in USD currency, North America reported a 2.0% uptick in constant currency. North America represents the company’s largest market and delivered 48.3% of TCS’ revenue in the quarter.
On the other hand, Latin America was down 2.1% in constant currency.
The UK, which comprised 17.2% of revenue during the quarter, reported a 0.6% fall (CC).
Elsewhere, Europe reported a 4.3% gain (CC).
Across Asia Pacific, revenue was up 2.5% (CC). India posted a 22.9% surge, while the Middle East and Africa reported a 7.6% increase, both in constant currency.
“Q1 was characterised by strong growth across several services. We won multiple AI-led transformation deals with our dual commitment to AI-led optimisation, as well as innovation-led outcomes,” Aarthi Subramanian, executive director, president and COO, said.
Tata Consultancy Services – Q1 2027
The results below exclude exceptional items.
|
(US $ millions) |
Q1 2027 |
Q1 2026 |
% change |
% change constant currency |
|
Revenue |
7,624 |
7,421 |
2.7% |
3.2% |
|
Gross margin |
3,019 |
2,904 |
3.9%% |
– |
|
Gross margin percentage |
39.5% |
39.1% |
– |
– |
|
Operating income |
1,826 |
1,815 |
0.6% |
– |
|
Net income |
1,460 |
1,493 |
-2.2% |
– |
Revenue by Industry
Revenue rose in the banking, financial services and insurance (BFSI) sector by 2.4%. The sector represented 32.1% of revenue during the quarter, the largest share among industries.
At the same time, consumer business fell 1.2%, the only decrease.
Life Sciences and healthcare rose 3.5%, while manufacturing saw a gain of 2.9%. Technology and services increased by 3.5%. Additionally, communication and media was up 1.4%, while energy, resources and utilities climbed by 6.9%. Across regional markets and others, revenue increased by 9%.
In the first quarter, TCS reported a Total Contract Value (TCV) of USD 9.5 billion. Headcount stood at 593,798.
Shares
Tata Consultancy Services shares last traded at INR 2,059, up 0.07% on the day.
USD 1 = 95.49