TCS did not disclose how much of its June quarter total contract value (TCV) of $9.5 billion qualifies as pure AI deals, but Chief Executive Officer (CEO) and Managing Director (MD) K Krithivasan said very few new deals are now being signed without an AI-led element.
“Traditionally, you could think of it as roughly a 50:50 mix between renewals and new business. This quarter, however, the share of net-new business is higher because it includes a few large deals. Almost every deal today has an AI component,” Krithivasan told Business Standard in an interaction on Friday after the first quarter 2026-27 (Q1FY27) results. The company saw its annualised AI revenue grow by 13.6 per cent to touch $2.6 billion.
A contract does not qualify as AI revenue simply because AI coding assistants or automation tools are used in delivery. Instead, TCS counts AI revenue only when it is central to the customer solution, such as applications that use AI for business processes like credit decision-making or technology modernisation, Krithivasan explained. His comments are significant at a time when investors are trying to gauge whether AI spending is translating into meaningful revenue for IT services firms or merely improving internal productivity.
They also reiterate his belief that AI is an opportunity and global system integrators like TCS will be an integral part of enterprises’ AI journey.
 "TCS CEO & MD K Krithivasan")