Shares of TCS surged 4.6% to ₹2,172.9 after the company disclosed that its AI‑led revenue rose to $3 billion from $2.6 billion in the June quarter, a 15% jump on a quarterly basis.
The AI segment now accounts for over 10% of TCS’s overall topline, a notable increase from the 8% share reported at the end of Q2 2026. In the broader IT services sector, peers like Infosys and Wipro saw AI revenue growth of 12% and 9% respectively, placing TCS slightly ahead.
MD and CEO K. Krithivasan noted that AI‑driven deflation has already touched about 50% of long‑term contracts, but he expects the pressure to ease within the next two years. He added that new AI‑centric projects are coming online faster than the market anticipates, which should help neutralize any revenue drag.
While TCS did not issue formal guidance, the CEO’s optimism signals confidence in the pipeline of AI‑enabled initiatives. Analysts predict that the company will sustain its current growth trajectory into Q4 2026, with AI projects potentially boosting margins.
The market’s positive reaction—evidenced by the 4.6% rally—shows investors are buying into TCS’s AI strategy. The stock now trades near its 12‑month high, reflecting expectations that AI will become a revenue engine rather than a cost center.