TCS lands $800 million AI deal with SKF as Q1 orders hit $9.5 billion

Tata Consultancy Services (TCS) secured new orders worth $9.5 billion in the first quarter of FY27, including an $800 million artificial intelligence-led transformation deal with SKF, the company said while reporting its quarterly earnings.

The order book also included a multi-million-dollar strategic partnership with ServiceNow and another multi-million-dollar engagement with a Europe-based Fortune Global 50 company. TCS reported a 5% year-on-year rise in consolidated net profit to Rs 13,349 crore for the quarter, with revenue from operations growing 14% year-on-year to Rs 72,275 crore.

The company said its annualised AI revenue run rate reached $2.6 billion in the quarter, a 13.6% sequential increase, and that it won multiple AI-focused contracts spanning IT operations, software engineering, application modernisation and autonomous global business services. TCS also entered strategic partnerships with Anthropic and Mistral during the quarter.

CEO K Krithivasan said the company’s performance reflected sustained business momentum despite geopolitical uncertainty and macroeconomic challenges, with clients continuing to increase spending on AI, technology modernisation, cybersecurity and platform simplification.