TCS’s AI revenue run-rate hits $2.6 billion after Anthropic, Mistral deals

Tata Consultancy Services (TCS) said its annualised AI revenue run rate reached $2.6 billion in the first quarter of FY27, a 13.6% sequential increase, as India’s largest IT services company reported a 5% year-on-year rise in consolidated net profit to Rs 13,349 crore.

During the quarter, TCS entered strategic partnerships with Anthropic and Mistral. Under the Anthropic collaboration, TCS will establish a dedicated business unit and provide enterprise-wide access to Claude for 50,000 employees through a licensing arrangement. Under its Mistral partnership, TCS became the first global systems integrator partner for Mistral Forge.

The company said it won multiple AI-focused contracts spanning IT operations, software engineering, application modernisation, Software-as-a-Service implementation and autonomous global business services. Revenue from operations grew 14% year-on-year to Rs 72,275 crore during the quarter, with operating margin at 24% and net margin at 19.2%.

TCS secured new orders worth $9.5 billion in the quarter, including an $800 million AI-led transformation deal with SKF and a multi-million-dollar strategic partnership with ServiceNow. CEO K Krithivasan said clients continued to increase spending on artificial intelligence, technology modernisation, cybersecurity, sovereign cloud infrastructure and platform simplification despite geopolitical uncertainty.