Tata Consultancy Services (TCS) Q1 26/27 earnings summary

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.