TCS Exceeds Revenue Forecasts with $7.44 Billion on AI Demand Surge
Tata Consultancy Services reported better-than-expected quarterly revenue of $7.44 billion, driven by growing demand for AI services. The Indian IT giant's sales ROSE 4.9% year-over-year to 670.87 billion rupees, surpassing analyst estimates of 666.76 billion rupees.
AI-related work now generates $1.8 billion annually for TCS, representing nearly 6% of total revenue. Regional performance showed particular strength in the Middle East and Asia with 8.3% growth, while North America - accounting for half of TCS's business - returned to growth for the first time since Q3 2023.
The results come amid cautious spending by clients in India's $283 billion IT sector, with concerns persisting about the U.S. economy, potential tariffs, and proposed increases to work visa fees.
