Street cautious on TCS near-term outlook despite solid Q2 and AI ambitions

Shares dip after Q2 profit misses estimates; brokerages cite solid AI plans and margin gains but flag weak near-term growth visibility

Shares of Tata Consultancy Services (TCS), the country’s largest IT services company, slipped as much as 1.53 per cent on Friday before narrowing losses to close 1.1 per cent lower at around ₹3,028 apiece. The decline followed the company’s second-quarter (Q2FY26) earnings, where net profit came in below Street estimates, even as revenue and margins were in line.

 

The stock has fallen 26 per cent so far this year, compared to a 6.7 per cent gain in the benchmark Nifty 50. While the immediate trigger was the September quarter results, the Street going ahead will focus on TCS’ plans for