TCS Share Price Jumps After Q1 Results; Brokerages Raise Target Price, Bullish Outlook Strengthens

Tata Consultancy Services (TCS) shares rallied more than 3% after the company announced its Q1 FY27 results, boosting investor confidence and lifting the broader IT sector. Strong deal wins, growing AI revenue, and expectations of a gradual demand recovery encouraged brokerages to maintain a bullish outlook on India's largest IT services company.

TCS Shares Rise After Q1 FY27 Earnings

TCS shares opened at ₹2,105 and climbed to an intraday high of ₹2,133, making the stock one of the top gainers on the Nifty 50. The positive momentum followed the company's June-quarter earnings and optimistic management commentary on business recovery.

The rally also supported other major IT stocks, including Infosys, as investors turned positive on the sector.

TCS Q1 FY27 Results

For the June quarter, TCS reported:

Revenue: ₹72,275 crore (slightly above market estimates)

Net Profit: ₹13,349 crore (marginally below expectations)

Annual AI Revenue: $2.6 billion

Total Deal Wins: $9.5 billion

The company's strong AI-led business growth and healthy deal pipeline highlighted the increasing adoption of artificial intelligence by global enterprises.

Brokerages Remain Bullish on TCS

Several leading brokerage firms reaffirmed their positive stance on the stock following the quarterly results.

Motilal Oswal maintained a 'Buy' rating with a target price of ₹2,350.

Nuvama retained its 'Buy' recommendation and set a target price of ₹4,000, citing strong hiring and improving business demand.

Daulat Capital also reiterated a 'Buy' call with a target price of ₹2,580, stating that demand appears to have bottomed out and recovery is expected in FY27.

AI Business Continues to Drive Growth

Artificial Intelligence remained one of the biggest growth drivers for TCS during the quarter. The company generated $2.6 billion in AI-related revenue, while securing $9.5 billion worth of new deals, reflecting rising enterprise spending on AI-powered digital transformation.

Management indicated that demand is expected to improve gradually from the second quarter of FY27, strengthening optimism for the remainder of the financial year.

Outlook

Analysts believe TCS is well-positioned to benefit from increasing AI adoption, a strong client pipeline, and improving global IT spending. While profit growth remained slightly below expectations, the company's healthy revenue performance and robust order book have reinforced confidence among investors.

With multiple brokerages maintaining 'Buy' recommendations and raising target prices, TCS continues to remain one of the preferred long-term IT stocks for market participants.