Tata Consultancy Services reported an 11.2% year-on-year revenue increase for its second quarter of fiscal 2027. Following reports of the company's suspension from the US Department of Labor's PERM certification program, CEO K. Krithivasan clarified that reliance on this process is minimal. TCS shares rose 3.85% on October 9.
Tata Consultancy Services (TCS) posted a strong performance in its second quarter of fiscal year 2027, reporting revenue of ₹73,188 crore. This marks an 11.2% increase compared to the same period last year. Following the earnings announcement, the company’s stock rose 3.85% to close at ₹2,156.00 on October 9.
Amid the financial results, the company faced news regarding its status with the US Department of Labor. TCS is one of several IT firms currently suspended from the Permanent Labor Certification Program (PERM), which is a step in the US green card process. CEO K. Krithivasan downplayed the impact of this suspension, noting that the firm's reliance on the PERM process has been minimal, with total applications in the single digits over the past two years.
Strategic Shift to Local Hiring
The company is focused on a long-term strategy of increasing its local presence in the United States to reduce reliance on foreign-worker visa programs. Currently, locally hired staff represent half of the company’s 30,000-strong US workforce. TCS has outlined a clear plan to recruit an additional 15,000 professionals in the region over the next five years to support its operations.
This shift is part of a broader move to maintain business continuity despite rising US immigration and visa scrutiny. While the company is prioritizing this local hiring model, it continues to manage a mix of cross-border talent to service its clients efficiently.
AI Growth and Shareholder Returns
Artificial Intelligence remains a significant growth driver. TCS reported annualised AI-led revenue exceeding $3.1 billion, which now accounts for more than 10% of the company's total revenue. The firm is increasingly utilizing AI for enterprise transformations, shifting the focus from internal productivity to client-facing solutions.
For shareholders, the company declared a second interim dividend of ₹12 per share. Investors should note that the record date for this dividend is October 14, 2026, with the payment scheduled for October 30, 2026.
Looking ahead, investors may track how the company manages margin pressures and global technology spending, which remains cautious. The ability to maintain profitability while scaling local operations and absorbing AI-related costs will be an important metric in coming quarters.