Tata Consultancy Services
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Tata Consultancy Services (TCS) investor relations material

Tata Consultancy Services Q1 26/27 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 26/27 earnings summary9 Jul, 2026

Executive summary

  • Q1 FY27 revenue reached ₹72,275 crore (INR 722,750 Mn), up 2.2% QoQ and 13.9% YoY, with USD revenue at $7,624 Mn, flat QoQ and up 2.7% YoY; growth led by BFSI, technology software, and services.

  • Operating margin was 24.0%, net margin at 19.2%, and gross margin at 39.6%.

  • Order book TCV reached $9.5 Bn, including a net new $800 Mn AI-led megadeal and $4.7 Bn from North America.

  • AI services annualized revenue rose to $2.6 Bn, up 13.6% YoY.

  • Closing headcount was 593,798, with voluntary LTM attrition at 13.6% in IT Services.

Financial highlights

  • Consolidated revenue from operations for Q1 FY27 was ₹72,275 crore, up from ₹63,437 crore in Q1 FY26.

  • Net profit for Q1 FY27 was ₹13,420 crore, compared to ₹12,819 crore in Q1 FY26.

  • Cash conversion remained strong at 93% of net income; total cash and investments stood at ₹502,320 Mn.

  • Earnings per share for Q1 FY27 was ₹38.28; consolidated basic and diluted EPS was ₹36.90.

  • Free cash flow was ₹116,620 Mn.

Outlook and guidance

  • Optimism for Q2 with expected improvement in demand, especially in manufacturing and life sciences.

  • Anticipates margin recovery to 25%+ as wage hike headwinds subside.

  • Forward-looking statements highlight risks from competition, wage inflation, currency fluctuations, and geopolitical instability.

  • No specific revenue or earnings guidance provided.

  • The Board reaffirmed confidence in ongoing business performance by declaring an interim dividend.

Breakdown of Q1 2026 CSC legal settlement costs
Consumer Business sequential revenue change
Identify the January 2026 acquisition target
Explain the non-recurring nature of AI revenue
How does TCS define Forward Deployed Engineers
What AI client engagement models are emerging
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