TCS is set to report Q2 revenue of $7.657 billion, up 0.4% from the $7.624 billion seen last quarter, while EBITDA margin is projected to rise to 24.2% from 24.0%.
The CNBC‑TV18 poll shows analysts' consensus matches the company’s own figures, signalling confidence that the modest lift will keep the stock within its 35% decline trend for 2026.
AI revenue, which accounts for 8.5% of the run rate, is expected to hit $2.6 billion, a 13.6% sequential jump. The firm hints at 15% productivity gains from AI‑driven automation, but the question remains how much of that will be passed on to clients.
The €320 million MHP deal is slated to add €740 million in revenue, but with a 10% margin it could dilute TCS’s EBITDA by 50‑60 basis points initially. Analysts note the strategic partnership with Porsche may inject €1.25 billion in long‑term value.
Investors will watch the Q2 filing for guidance on next‑quarter earnings, the impact of the MHP integration, and the pace of AI monetisation. As of Wednesday, the stock sits at ₹2,095, a marginal dip amid broader IT sector headwinds.
TCS’s quarterly outlook remains anchored by the seasonally stronger September period, but client deferrals and pricing concessions could temper revenue growth. The company’s constant‑currency lift is expected to be 0.5‑0.6% sequentially, with wage‑hike impact offset by AI investment.
Deal wins are projected to stay healthy at $9‑10 billion, echoing the $9.5 billion from Q1 and including a recent $800 million mega‑deal with SKF. The MHP acquisition is expected to solidify TCS’s AI capabilities across the mobility value chain, potentially boosting margins beyond the current 24.2% target.
At the end of the quarter, analysts will assess whether TCS can maintain an exit EBIT margin above 25% amid integration costs and market softness. The next earnings call will unveil whether the company can convert AI and MHP synergies into tangible profit lift.
Overall, the market is cautiously optimistic: TCS’s share price, trading at ₹2,095, reflects a 0.7% decline from the previous day, underscoring the delicate balance between expectations and execution in the IT services sector.