TCS Wins Multiple AI Transformation Deals

TCS begins FY27 with continued growth

K Krithivasan, Chief Executive Officer and Managing Directo

FinTech BizNews Service

Mumbai, July 9, 2026: Tata Consultancy Services (BSE: 532540, NSE: TCS) reported its consolidated financial results according to IFRS, for the quarter ending June 30, 2026.

Highlights of the Quarter Ended June 30, 2026

• Revenue at US$ 7,624 million, Flat QoQ, +2.7% YoY
• Operating Margin at 24.0%*
• Net Income at US$ 1,460 million*| Net Margin at 19.2%*
• Net Cash from Operations at US$ 1,310 million i.e. 93% of Net Income
• Workforce strength: 593,798; LTM Attrition (IT Services): 13.6%
• Dividend per share: ₹12 per share | Record date 15-Jul-2026 | Payment date 31-Jul-2026. (Excludes exceptional item)
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• Aarthi Subramanian, Executive Director - President and Chief Operating Officer
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• K Krithivasan, Chief Executive Officer and Managing Director, said “Q1 FY27 reflects continued growth momentum and the strength of our strategic positioning, despite geopolitical and macro-economic headwinds. We delivered a strong order book of $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 $2.6 billion annualized revenue run rate. As customers accelerate investments in AI, modernization, cybersecurity, sovereign cloud and platform simplification, our strong deal conversion, improving client mining and expanding ecosystem partnerships position TCS well to translate opportunity into sustained growth”.

Aarthi Subramanian, Executive Director - President and Chief Operating Officer, said “Q1 was characterized by strong growth across several services. We won multiple AI-led transformation deals with our dual commitment to AI-led optimization as well as innovation-led outcomes. These wins validate our approach to AI-led efficient ITOps, accelerated Software Engineering and Modernization, AI-first process redesign and implementation of SaaS solutions and Autonomous GBS. We signed strategic partnerships with Anthropic and Mistral expanding our AI ecosystem”. 

Samir Seksaria, Chief Financial Officer, said, “In Q1, we rolled out annual wage hikes, strengthened our partnership ecosystem, and targeted investments to enhance long-term competitiveness. We remain focused on building, acquiring, or partnering for AI-led capabilities while maintaining disciplined execution, industry-leading profitability and return ratios”.

Sudeep Kunnumal, Chief HR Officer, said “This quarter, we completed annual salary increments for all associates globally and aligned salary structures with the new India Labour Code requirements. We continue to invest in AI infrastructure, next-generation skill development platforms, to enable our people to be future-ready, while fostering a workplace where every associate feels safe, valued, trusted and empowered to grow”.

Q1 FY27 Segment Highlights

Growth by Domain

Growth by Markets

Key Highlights for the quarter

• Won a landmark US$800 million global AI-led business transformation deal with SKF; redesigning enterprise operations around an intelligent digital core. The program establishes AI as the enterprise nervous system, harmonizing fragmented processes, data, and platforms into a self-learning operational backbone that drives predictive decision-making, autonomous optimization, and enterprise-wide agility at scale. This engagement modernizes SKF’s entire technology landscape, positioning the company as an ‘AI-first’ industrial manufacturer while providing global end-to-end managed services encompassing infrastructure, applications, data, and global connectivity. 
• Won a deal with a North American utility major for its AI-driven utility transformation into a future-ready, innovation-led operating model. By embracing AI at scale, the utility major is pioneering the development of an enterprise-wide digital ecosystem spanning grid operations, customer experience, asset management, and workforce enablement, while building a scalable foundation with strong AI governance and lifecycle management. This partnership involves establishing an Enterprise AI and Data CoE to scale AI governance, data and adoption. We will also deploy Agentic AI for AI-driven IT Ops, Software Engineering and workflows. 
• Won a multi-million dollar deal with a Europe-based Fortune Global 50 firm for transforming employee experience and HR operations using Agentic AI-driven operating model.
• TCS and ServiceNow have further elevated their strategic partnership to accelerate large-scale AI adoption for enterprises. In a multi-million $ partnership agreement, TCS & ServiceNow will leverage joint go-to-market initiatives and opportunities to drive growth and customer value.
• As TCS and ABB celebrate 20 years of strategic partnership, the companies have further strengthened their collaboration through a new multi-million-dollar Future Network Model engagement. Over the next five years, the AI-enabled program will modernize ABB’s global network operations through intelligent automation, enhanced cyber resilience, and next-generation managed services, improving operational agility and business continuity while advancing ABB’s digital transformation agenda.
• TCS has been selected by a large U.S. healthcare payer, to accelerate its SRE transformation through an AI first, Agentic Operations model. The new AI led operating model will deliver automated ticket resolution, persistent observability, proactive reliability engineering, and self-healing capabilities in a journey towards autonomous operations.
• Announced a global strategic partnership with Anthropic, to help customers scale enterprise AI adoption. As part of this collaboration, TCS will set up a dedicated Business Unit focused on delivering strong customer value propositions, joint industry solutions, and deep AI expertise on the Claude family of models through early access, enabling enterprises to accelerate AI-led transformation and unlock greater business value across industries. TCS will equip 50,000 associates across engineering, finance, legal, marketing, and sales with Claude through enterprise-wide licensing.
• TCS became the first global systems integrator partner for Mistral’s advanced system for enterprises to build frontier-grade AI models grounded in their proprietary enterprise knowledge and domain-specific data, by announcing a landmark strategic partnership with Mistral Forge. The partnership combines Mistral’s frontier AI capabilities with TCS’ deep enterprise context, domain knowledge, and engineering excellence to help organisations scale enterprise AI responsibly, with greater speed.
• Announced the launch of Global Value & Innovation Centres (GVIC) Business Unit to help enterprises establish AI-native GCCs and transform existing GCCs into a value and innovation-led operating model. The Business Unit will help enterprises build and scale AI-native GCCs, drive transformation, and unlock greater business value as GCCs evolve into strategic engines of growth and innovation.
• Expanded global cloud portfolio with the launch of SovereignSecure CloudTM in Europe. This offering combines sovereign cloud architecture with AI capabilities for governments, public sector enterprises, and regulated industries.
• Signed MoUs with Siemens Energy AG and Siemens Energy India to strengthen collaboration across digital, IT services, and industrial AI, including data center technologies. The partnership aims to drive innovation, enhance resilience, and support sustainable growth in the energy sector.
• Expanded strategic partnership with Google Cloud to help enterprises adopt AI-native, autonomous operating models. This collaboration will support deploying and managing agentic and autonomous AI systems that enable faster decision-making across complex business and IT functions, without adding operational risk or complexity.
• A leading US grocery retailer has expanded its strategic partnership with TCS to drive operations reliability for customer experience, merchandising, and fulfilment. Building on a strong foundation of delivery excellence and anchored in an AI-first operating model, TCS will leverage a digitized operations platform with intelligent-automation, virtual assistants, predictive analytics, and self-healing capabilities to drive resilience, scalability, and operational efficiency at scale. This will enhance fulfilment performance, optimize throughput, and improve customer satisfaction while delivering sustained operational efficiencies.
• Selected by a leading US specialty retailer as the strategic partner to modernize & transform the enterprise-wide IT landscape. Leveraging an AI-first Machine First™ delivery model spanning applications, data, infrastructure, and service desk, TCS will enable hyper-automation, cloud-native agility, secure and resilient operations. This transformation will deliver significant productivity gains, improve incident resolution, and establish a scalable, high-availability technology foundation to support the retailer’s long-term business growth and digital transformation objectives.
• Chosen by a global fashion retailer, as the strategic partner to drive enterprise-wide IT transformation, consolidating the current multi-vendor landscape.  TCS will leverage TCS CognixTM, Machine FirstTM and TCS Cloud Exponence, to establish an AI-first, unified, engineering-led operating model that enhances resilience, security, and service reliability while reducing technology debt. This transformation will create a future-ready digital foundation that accelerates business agility, enables data-driven decision-making, improves customer experiences, and supports the retailer's global expansion and long-term growth ambitions.
• Collaborated with Tottenham Hotspur Football Club, as the Club’s Digital Transformation Partner across fan engagement, operations, and its digital ecosystem. This partnership will move the Club from world-class infrastructure to a genuinely connected ecosystem, driving innovation across operations and performance intelligence, along with creating more intuitive user experiences across all platforms.
• Expanded long-standing partnership with Euroclear Group to drive the next phase of transformation for Sweden’s Central Securities Depository (CSD). As part of this initiative, Euroclear Sweden will deploy TCS BaNCSTM for Market Infrastructure and QuartzTM to build a resilient, future-ready, and scalable CSD platform aligned with European market standards.
• Expanded collaboration with Oracle by launching India’s first Oracle AI Data Platform Lab and Center of Excellence (CoE) in Kolkata, with plans to scale across additional cities to drive AI-powered enterprise transformation.
• Won a flagship AI-led Engineering IT transformation program with Hager, establishing a services model spanning Engineering, Applications, Edge and Cloud ecosystems. By embedding intelligence into operational workflows, the program would create an optimizing platform, proactive service management, and scalable digital foundation, which would enhance resilient engineering operations and enable innovation.