Tata Consultancy Services (TCS) posted a 2.7% year-over-year increase in net consolidated revenue for the first quarter of fiscal year 2027, reaching $7,624 million for the period ending June 30, 2026. The company’s annualised AI revenue surged 13.6% quarter-on-quarter to $2.6 billion, while net income stood at $1,460 million in Q1 FY27.
Profit and Margin Performance
Consolidated net profit rose 5% YoY to Rs 13,349 crore, compared to Rs 12,760 crore in the same quarter last year. However, the operating margin dropped 130 basis points sequentially to 24%, excluding extraordinary items such as wage increases, AI investments, and a one-time legal expense. Net cash from operations was $1,310 million.
Order Book and Major Deal
TCS secured a total contract value of $9.5 billion in Q1 FY27, including a landmark $800 million global AI-led business transformation deal with SKF. CEO K Krithivasan stated, “We delivered a strong order book of USD 9.5 billion, including a marquee AI-led transformation deal with SKF, while continuing to add clients across key revenue bands and scaling our AI business to a USD 2.6 billion annualised revenue run rate.”
Dividend and Operational Highlights
The company declared an interim dividend of Rs 12 per equity share (face value Rs 1 each), with a record date of July 15. Chief Operating Officer Aarthi Subramanian noted, “Q1 was characterised by strong growth across several services. We won multiple AI-led transformation deals with our dual commitment to AI-led optimisation as well as innovation-led outcomes.”
