Tata Consultancy Services reported its weakest September-quarter sequential revenue growth in three years as traditional IT-services demand remained under pressure.
Revenue grew just 0.5% quarter on quarter in constant currency, while annualized AI revenue rose nearly 20% to $3.1 billion.
AI brings growth and pricing pressure
Large companies are spending more on artificial intelligence but remain cautious on conventional consulting and outsourcing projects.
TCS said deal wins reached $9.6 billion, slightly above the previous quarter but below year-ago levels.
The results underline a broader shift across India’s technology-services sector as AI changes pricing models and client priorities.
Sources
- TCS quarterly earnings release
- Reuters, Oct. 8, 2026
