TCS, Infosys Post Strong Q1 FY27 Results; IT Sector Revenue Up 12% YoY

Tata Consultancy Services (TCS) and Infosys have reported stronger-than-expected corporate financial results for the first quarter of FY27, signaling a decisive turnaround in client discretionary technology expenditure.

Revenue for TCS grew 12.4% year-on-year, driven primarily by mega-deals across North America and BFSI digital transformation programs. Meanwhile, Infosys revised its annual revenue guidance upward, citing unprecedented demand for generative AI workflow automations and cloud migration suites.

Industry analysts note that enterprise clients are shifting from experimental AI pilots to enterprise-wide production deployments, benefiting India's top-tier IT services exporters with high-margin multi-year service contracts.