TCS anticipates slower growth in June 2026 quarter

Tata Consultancy Services expects muted revenue and profit growth for the June 2026 quarter. Client decision cycles are lengthening and project ramp-ups are slowing. Revenue is forecast to stay flat compared with the previous quarter.

Tata Consultancy Services has signaled weaker performance for the June 2026 quarter. The company points to longer client decision cycles that are delaying project starts and limiting growth.

Revenue is projected to remain unchanged on a sequential basis. A weaker rupee could provide limited relief to the company's rupee-reported results.

Investors are expected to focus on progress in AI projects and the overall deal pipeline during the upcoming earnings period.

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Realistic illustration showing India's economic growth with cityscape and financial symbols amid global challenges.
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India's economy grows 7.7 per cent in 2025-26 amid global shocks

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Provisional GDP estimates released on Friday show 7.7 per cent growth for 2025-26. The figure exceeds the government's February prediction by 0.1 percentage points. Outlook for 2026-27 points to a slowdown.

Nifty 50 firms expect double-digit revenue growth for the June 2026 quarter but project only single-digit profit increases due to rising costs. Input cost inflation and higher crude prices are squeezing margins across sectors.

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Europe's largest software maker SAP reported six percent revenue growth to 9.6 billion euros in Q1 2026, driven by cloud software revenues. CEO Christian Klein highlighted momentum in artificial intelligence. The company expects only moderate growth for the full year.

Comfort Systems USA posted 56.5 percent year-over-year revenue growth for the first quarter of 2026. The increase came from strength in both its electrical and mechanical segments. A record backlog and demand tied to AI infrastructure support further growth expectations.

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Jupiter Wagons posted a 72 percent decline in consolidated net profit for the March quarter. Revenue fell 25 percent year over year as the company faced weaker demand.

Indian IT stocks fell sharply on Wednesday following HCL Technologies' disappointing fourth-quarter earnings and cautious outlook. The Nifty IT index suffered a substantial drop amid renewed investor worries over artificial intelligence disruption. Major firms including Infosys, TCS and Tech Mahindra also declined.

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Microsoft posted better than expected third quarter results driven by sustained demand for its cloud and artificial intelligence offerings.

 

 

 

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