TCS reports widespread AI adoption and $2.6 billion AI revenues

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Tata Consultancy Services reported strong AI adoption and first-quarter results showing $2.6 billion in AI revenue, overall revenue of ₹72,275 crore, profit after tax of ₹13,349 crore and an EBIT margin of 24%. Management said AI engagement penetration exceeds 80% among its largest clients and that many AI projects are short-duration rather than annuity contracts, which can create 10–15% deflation on some renewals. TCS also announced a large net-new multi-year AI-led deal with SKF, affirmed optimism for FY27 versus FY26, and said hiring will focus on AI skills while protecting margins through productivity gains.

TCS reported $2.6 billion in AI revenue in Q1FY27.