BENGALURU, Jan 12 (Reuters) – India’s Tata Consultancy Services on Monday posted a third-quarter revenue marginally above estimates on AI-driven demand, with revenue from its key North \u200bAmerica market registering growth for the first time in two years.<\/p>\n
Artificial intelligence-led tech \u200cspending boosted growth for the Tata Group firm in a traditionally weak quarter, with AI services generating $1.8 billion annually \u200cand making up about 5.8% of total revenue.<\/p>\n
“Based on the client conversations, strong deal momentum and the leadership we are gaining in AI, we are confident of a good calendar year 2026,” said K Krithivasan, chief executive during a post-earnings analyst call.<\/p>\n
Clients of India’s $283 billion IT industry, however, \u2060remain cautious about tech spending due \u200cto growth concerns in the world’s largest economy, with macro headwinds like uncertainty over U.S. tariffs and proposed $100,000 visa fees further weighing on the \u200dsector.<\/p>\n
“The North America market has risen as the demand slowdown has bottomed out but we expect a gradual recovery as structural weakness continues,” said Ambarish Shah, analyst, Systematix.<\/p>\n
The region, accounting for nearly half of \u200bthe firm’s revenue, grew for the first time since July-September 2023, with five out \u200cof eight regions growing, led by Middle East and Africa at 8.3% and Continental Europe at 3.5%.<\/p>\n
The company also said tepid numbers in banking and financial services, and retail segments were due to the year-end seasonality impact and expected recovery from the ongoing quarter.<\/p>\n
Consolidated revenue for India’s largest software services firm rose 4.9% to 670.87 billion rupees ($7.44 billion) in the quarter ended December \u206031.<\/p>\n
Analysts had expected 666.76 billion rupees, as per data \u200bcompiled by LSEG.<\/p>\n
The Mumbai-based firm’s quarterly net profit fell \u200b14% to 106.57 billion rupees, missing analyst estimates of 130.24 billion rupees. TCS attributed this to one-time restructuring costs associated with layoffs, the impact of \u200dIndia’s new labour codes \u2060enacted in November 2025 and other legal costs.<\/p>\n
TCS’s total order book stood at $9.3 billion in the quarter, down from $10.2 billion a year ago.<\/p>\n
The company declared a dividend of \u206011 rupees per share as well as a special dividend of 46 rupees per share. Its Mumbai-listed shares \u200cclosed 1.3% higher ahead of the results.<\/p>\n
($1 = 90.1660 Indian rupees)<\/p>\n
(Reporting by Sai Ishwarbharath \u200cB; Editing by Janane Venkatraman and Vijay Kishore)<\/p>\n","protected":false},"excerpt":{"rendered":"BENGALURU, Jan 12 (Reuters) – India’s Tata Consultancy Services on Monday posted a third-quarter revenue marginally above estimates…\n","protected":false},"author":2,"featured_media":230860,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,137362,363,364,2344,111,139,69,1730,145,72070],"class_list":{"0":"post-230859","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-analyst-estimates","10":"tag-artificial-intelligence","11":"tag-artificialintelligence","12":"tag-india","13":"tag-new-zealand","14":"tag-newzealand","15":"tag-nz","16":"tag-tata-consultancy-services","17":"tag-technology","18":"tag-total-revenue"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/230859","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=230859"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/230859\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/230860"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=230859"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=230859"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=230859"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}