Tata Consultancy Services (TCS) saw strong growth in its artificial intelligence (AI) business in the first quarter of FY27, with annualized AI revenue rising to $2.6 billion, a 13.6% increase from the previous quarter. The company also hired 14,000 campus graduates as it works to build an AI-focused workforce. With a solid $9.5 billion order book, TCS landed several major AI-driven transformation deals, showing how important AI is becoming in its business plans.
Even with global economic and political uncertainty, India’s largest IT services company kept up strong business momentum. TCS said its AI revenue growth came from several big transformation projects, such as an $800 million deal with SKF, a partnership with ServiceNow, and another large agreement with a major European company.
TCS CEO and Managing Director K. Krithivasan said customers are investing more in AI, cloud upgrades, cybersecurity, and making platforms simpler. He also said the company’s strong pipeline of deals and growing tech partnerships put it in a good position for continued growth.
Chief Operating Officer Aarthi Subramanian said recent contract wins show that customers trust TCS’s AI skills more than before. She noted that more companies are using AI for software development, IT operations, business process changes, and SaaS projects. TCS has also built up its AI network by partnering with Anthropic and Mistral.
TCS is changing its hiring approach to focus more on AI. Between April and June, it added 9,279 employees, bringing its total staff to almost 594,000. Chief HR Officer Sudeep Kunnumal said campus hiring now targets people with digital and AI skills. TCS has also updated its training to focus on AI and is putting more weight on project-based learning to help employees get ready for real-world work.
TCS is also hiring more experienced professionals with AI and specialized knowledge. The company expects that the need for AI talent will keep growing as more businesses start using AI.
During the quarter, TCS employees finished 14.6 million hours of training and gained over 1.3 million new skills. Now, more than 312,000 employees have advanced skills in AI and machine learning.
Although AI will automate some parts of software development, Krithivasan said he does not expect a big drop in jobs for knowledge workers. Instead, new roles are opening up in areas like prompt engineering, AI model training, testing, and managing AI systems.
TCS reported revenue of Rs 72,275 crore for the quarter, beating market expectations. Its net profit was Rs 13,349 crore, which was just below what analysts predicted. The company also announced an interim dividend of Rs 12 per share, showing confidence in its long-term future.
TCS begins FY27 with continued growth driven by client investments in AI and business transformation. At a glance, our #TCSQ1 financial highlights:
– 𝗥𝗲𝘃𝗲𝗻𝘂𝗲: ₹72,275 crore, up 2.2% Q-o-Q
– 𝗖𝗼𝗻𝘀𝘁𝗮𝗻𝘁 𝗖𝘂𝗿𝗿𝗲𝗻𝗰𝘆 𝗥𝗲𝘃𝗲𝗻𝘂𝗲: Grew 0.4% Q-o-Q
– 𝗨𝗦𝗗… pic.twitter.com/EbTtaPD8mj— Tata Consultancy Services (@TCS) July 9, 2026
Stay informed with the latest trends in Web3, blockchain innovation, and cybersecurity updates at 3verseTV
You need to login in order to Like
Leave a comment