Tata Consultancy Services (TCS) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue was ₹73,188 crore, up 1.3% QoQ and 11.2% YoY in INR; constant-currency growth was 0.5% QoQ and 2.8% YoY.

• Q2 consolidated net profit was ₹13,934 crore, up from ₹12,131 crore a year earlier.

• TCV was $9.6B, excluding the Porsche and Best Buy deals; annualized AI revenue reached $3.1B.

• Medium-term growth confidence was supported by pipeline, client discussions and scaling enterprise AI adoption.

• A second interim dividend of ₹12 per share was declared, payable October 30, 2026 to shareholders on record October 14, 2026.

Financial highlights

• USD revenue was $7,642M, up 0.2% QoQ and 2.4% YoY; international revenue grew 1.2% sequentially in constant currency.

• Q2 total income was ₹74,525 crore; profit before tax was ₹18,638 crore, versus ₹16,068 crore YoY.

• H1 revenue was ₹1,45,463 crore and net profit ₹27,354 crore, versus ₹1,29,236 crore and ₹24,950 crore, respectively, a year earlier.

• Operating income was ₹17,301 crore for Q2 and ₹33,677 crore for H1.

• EPS was ₹38.37 for Q2 and ₹75.27 for H1.

Outlook and guidance

• Management expressed medium-term growth confidence based on TCV, pipeline and client conversations, while avoiding a near-term quarterly growth call.

• Long-term margin aspiration remains 26%-28%; near-term priority is investment for growth, with an aim to inch margins up from 24%.

• Q3 furlough patterns were expected to resemble prior years; deferred India projects were expected to return over the medium term.

• Data-center revenue is expected to begin 18-24 months after a contract is secured.