TCS Q2 Results: AI now makes up over 10% of revenue as annualised run rate crosses $3 billion

Tata Consultancy Services (TCS) saw its annualised artificial intelligence (AI) revenue run rate cross $3 billion in the September quarter, with AI now contributing more than 10% of the company's overall revenue. The quarter also saw AI-led partnerships with Porsche and Best Buy, along with new AI platforms and centres across manufacturing, retail and healthcare.

Tata Consultancy Services (TCS) closed the September 2026 quarter with an annualised artificial intelligence (AI) revenue run rate of $3.1 billion, up from $2.6 billion three months earlier. That puts AI revenue at more than 10% of the company's overall revenue, as the Tata Group technology major continues to build AI into its large transformation engagements.

The latest quarter's AI growth was accompanied by a series of deals and partnerships that put AI into specific business functions, including Porsche's manufacturing and mobility operations and Best Buy's India capability centre.

TCS' total revenue for the quarter stood at ₹73,188 crore. TCS Executive Director, President and Chief Operating Officer Aarthi Subramanian said, "Demand for delivering business outcomes with AI-native solutions, AI-led transformation of enterprise systems and autonomous GBS, continues to accelerate."

Two of the most significant announcements were with Porsche AG and Best Buy.

The Porsche partnership will see TCS establish an AI Mobility Centre of Excellence covering manufacturing, engineering, operations and customer experience. As part of the arrangement, TCS will also acquire 100% of MHP Management- und IT-Beratung GmbH, Porsche's Germany-based management and IT consulting subsidiary. The transaction is subject to regulatory approvals. TCS

For Best Buy, TCS will combine the retailer's existing business knowledge in India with its technology, engineering and AI capabilities. The plan includes redesigning workflows, developing AI-powered solutions and transforming the existing GCC into an AI Capability Centre.

Chief Executive Officer and Managing Director K Krithivasan said the Porsche and Best Buy deals represent a new category of transformation partnerships, with the company working with clients to build "repeatable value platforms that will industrialise AI at scale".

AI is also being incorporated into TCS' other enterprise transformation work. Honeywell Technologies has selected TCS as its global end-to-end SAP S/4HANA business transformation partner. The programme is intended to standardise processes and modernise its application landscape, while providing a base for further enterprise automation and AI initiatives.

At Aareal Bank, TCS is providing infrastructure services covering data centres, cloud platforms, workplace services, cybersecurity and infrastructure management. The company said the engagement will use its AI-led delivery model and intelligent automation capabilities.

The company has also been adding facilities and platforms aimed at specific AI use cases.

TCS launched an Industrial Autonomy & Engineering Lab in Pune, which brings together digital twins, robotics, industrial AI, factory control systems and real-time operational intelligence. It also launched an Autonomous Engineering Lab powered by NVIDIA in Bengaluru, focused on AI-led solutions for mobility and manufacturing.

TCS and Google Cloud opened a Gemini Experience Centre in Mexico City, while a separate centre was launched in Kolkata for consumer business use cases built around Google's Gemini models.

The company also launched TCS ADD AgentHub, an enterprise platform for using agentic AI in drug development, including clinical trials and pharmacovigilance.

The AI push extends to TCS' research pipeline. As of September 30, the company had filed 2,176 AI-led patents, including 180 during the quarter. It had also received 649 AI-led patent grants, of which 47 came during the quarter.