TCS Posts Modest Revenue Beat as AI Demand Lifts North America Growth

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Tata Consultancy Services reported a slim third-quarter revenue beat on Monday, driven by artificial intelligence-led demand, with its key North America market returning to growth for the first time in two years.

Consolidated revenue for India’s largest software services firm rose 4.9% year-on-year to 670.87 billion rupees ($7.44 billion) for the quarter ended December 31, slightly above analysts’ estimate of 666.76 billion rupees, according to LSEG data. The traditionally weak December quarter benefited from increased AI spending by clients, with AI services generating about $1.8 billion annually and accounting for roughly 5.8% of total revenue.

Chief Executive K Krithivasan said strong deal momentum and growing leadership in AI underpin the company’s outlook. “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,” he said during a post-earnings analyst call.

North America, which contributes nearly half of TCS’s revenue, posted growth for the first time since the July–September 2023 quarter, signaling a potential bottoming out of the slowdown. Five of the company’s eight geographic regions recorded growth, led by the Middle East and Africa with an 8.3% increase, followed by Continental Europe at 3.5%.

TCS Campus Siruseri, Chennai - MGS Architecture

Despite these gains, caution persists across India’s $283 billion IT services industry as clients remain wary of non-essential technology spending amid macroeconomic uncertainty in the United States. Analysts cited ongoing concerns around tariffs and proposed $100,000 visa fees as additional headwinds. Ambarish Shah of Systematix said North America’s recovery is likely to be gradual as structural weaknesses continue.

TCS noted that softer performance in banking and financial services and retail was largely due to year-end seasonality, with an expected recovery from the current quarter. The company’s total order book stood at $9.3 billion, down from $10.2 billion a year earlier.

Quarterly net profit fell 14% to 106.57 billion rupees, missing analysts’ expectations of 130.24 billion rupees. The decline was attributed to one-time restructuring costs linked to layoffs, the impact of India’s new labour codes enacted in November 2025, and other legal expenses.

The Mumbai-based firm declared a dividend of 11 rupees per share, along with a special dividend of 46 rupees per share. TCS shares listed in Mumbai closed 1.3% higher ahead of the results.

HCLTech Narrows Annual Revenue Outlook as Deal Momentum Strengthens

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HCLTech narrowed its annual revenue growth forecast on Monday, citing a stronger deal pipeline and a modest beat in quarterly revenue, even as global demand for discretionary technology spending remains muted.

The Indian software services exporter reported a 13.3% year-on-year rise in revenue to 338.72 billion rupees ($3.8 billion) for the quarter ended December 31, exceeding analysts’ average estimate of 330.46 billion rupees, according to LSEG data. New deal bookings during the quarter climbed to $3 billion, prompting HCLTech to revise its full-year revenue growth outlook to a range of 4% to 4.5%, compared with its earlier forecast of 3% to 5%.

Chief Executive C Vijayakumar said client spending is selectively returning in areas that support artificial intelligence adoption, though he cautioned that overall demand is unlikely to rebound to post-pandemic peaks. “While uncertainty persists in the global market leading to slowing growth, the fundamental demand for technology as a driver for business transformation remains structurally intact,” he said during a post-earnings briefing.

Analysts viewed the updated outlook as a positive signal. Jefferies said the revised guidance provides “stronger visibility for growth in FY27,” while Centrum Broking analyst Piyush Pandey noted that the results were encouraging despite the December quarter typically being seasonally weak for IT firms.

India’s $283-billion IT services sector continues to face headwinds from cautious client spending in the United States, where macroeconomic uncertainty and geopolitical tensions have delayed non-essential technology investments. Earlier on Monday, industry leader Tata Consultancy Services also posted revenue slightly above expectations. Peers Infosys, Wipro, and Tech Mahindra are scheduled to report earnings later this week.

HCLTech’s quarterly profit fell 11.2% to 40.76 billion rupees, missing analysts’ forecasts, after the company took a one-time charge of 9.56 billion rupees linked to the impact of India’s new labour codes.

FIFA Names Stats Perform as Official Betting Data and Live-Streaming Partner Ahead of 2026 World Cup

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FIFA has appointed sports artificial intelligence firm Stats Perform as its first official distributor of betting data and betting-related live-streaming rights, covering all matches at the 2026 FIFA World Cup, the governing body said.

Under the agreement, Stats Perform will hold exclusive rights to distribute official betting data and live streams for a wide range of FIFA competitions. These include the 2027 Women’s World Cup, FIFA Futsal World Cups, youth World Cups and the FIFA Intercontinental Cup.

The three-year partnership will run through 2029 and is aimed at strengthening the integrity, consistency and reach of FIFA’s official data and betting products. FIFA said Stats Perform’s RunningBall unit will be responsible for delivering official betting data, while its Opta brand will exclusively supply licensed sportsbooks with player statistics, insights, scores and match trackers.

In addition, Stats Perform will act as an official distributor of live FIFA match streams to customers of licensed sports betting operators in selected territories, expanding access to real-time content in regulated markets.

Romy Gai, FIFA’s chief business officer, said the deal represents a significant step in the organization’s digital and commercial strategy. “This innovative partnership will create great opportunities to deliver official products for the benefit of the game and its fans,” he said.

The move comes as sports bodies increasingly seek tighter control over betting data and live streams, both to protect commercial value and to support integrity measures across global football competitions.