TCS shares surged 2.3% pre‑market, trading at ₹1,155 on the NSE, as investors digested the company’s Q2 filing.
The company reported a 0.5% rise in constant‑currency revenue, narrowly beating the 0.6% estimate compiled by analysts at Bloomberg. AI revenue crossed the $3 billion mark, accounting for more than 10% of the overall topline—up from 8% last year.
In the broader IT landscape, competitors like Infosys and Wipro saw AI revenue grow 12% and 9% respectively, underscoring the sector’s shift toward high‑margin tech services. TCS’s AI unit’s contribution of $3 billion translates to a 4% increase in unit revenue YoY.
Following the release, analysts at JPMorgan and Axis Securities raised their price targets to ₹7,200 and ₹7,050 respectively, citing the firm’s disciplined cost structure and expanding AI portfolio. The company’s credit rating remains a BBB‑ from CRISIL.
Management will present Q3 FY27 figures on November 15, with guidance pointing to a 2% revenue lift and an AI revenue target of $4 billion for the quarter. The board’s upcoming meeting in early December will also address a potential dividend hike.