The company signed $9.5 billion in contracts in the first quarter as customers apply AI across operations, IT, engineering and workforce functions.
Indian IT company Tata Consultancy Services (TCS) started FY27 with a total contract value (TCV) of $9.5 billion and a growing list of AI-focused initiatives across manufacturing, utilities, healthcare, human resources and retail, demonstrating that companies are moving beyond isolated AI deployments and embedding the technology into their core business and technology operations.
The company reported Q1 FY27 revenue of Rs 72,275 crore and annual AI revenue of USD 2.6 billion.
The latest set of client successes signals a shift in the way companies spend on AI. Rather than investing in standalone AI projects, organizations are applying AI across operational environments, IT management, software engineering, customer experience, and employee functions.
The clearest example is TCS’ US$800 million partnership with Swedish manufacturing company SKF. Under the agreement, TCS will redesign its enterprise operations around what it calls an intelligent digital core, modernizing SKF’s overall technology landscape and positioning the company as an AI-first industrial manufacturer, while also providing global end-to-end managed services spanning infrastructure, applications, data and connectivity.
The program aims to modernize SKF’s technology environment while helping the company operate as an AI-first manufacturer.
According to SKF, the partnership is focused not only on technology modernization, but also on building operational and AI infrastructure to support future business growth.
The same pattern can be seen in the utilities sector.
TCS has won a contract with a major North American utility for an enterprise-wide AI transformation program covering grid operations, customer experience, asset management, and employee empowerment. As part of the initiative, the company will establish an Enterprise AI and Data Center of Excellence to deploy agent AI across IT operations, software engineering, and business workflows.
Rather than focusing on one department or process, the program will span across operational and customer-facing functions, reflecting a broader approach to AI adoption.
The company also signed a multi-million dollar agreement with a Europe-based Fortune Global 50 company to transform its employee experience and HR operations using an agent-based AI operating model.
In the healthcare space, TCS was selected by a leading U.S. health insurance company to support its site reliability engineering transformation through an AI-first operating model. The program includes automated ticket resolution, observability, proactive reliability engineering, and self-healing capabilities to improve technology operations.
These efforts give channel partners and service providers a clear signal about where enterprise AI spending is starting to be concentrated. The focus is on AI-driven operations, governance, modernization, and managed environments rather than experimental projects and limited deployments.
Retail is emerging as another area where companies are applying AI at an operational scale.
Major U.S. grocery retailer expands partnership with TCS to improve fulfillment, merchandising, and customer experience operations. This effort includes predictive analytics, intelligent automation, virtual assistants, and self-healing operational capabilities designed to improve efficiency and service delivery.
The US specialty retailer also selected TCS to modernize its enterprise-wide IT systems through an AI-first delivery model covering applications, infrastructure, data, and service desk operations. The company says the transformation is expected to improve productivity, operational resiliency and incident management.
Meanwhile, the global fashion retailer collaborated with TCS to unify its multi-vendor technology environment and establish a unified operating model focused on service reliability, resiliency and technology simplicity.
This trading activity is consistent with TCS management’s comments that despite widespread economic uncertainty, customers continue to invest in AI, modernization, cybersecurity, sovereign cloud, and platform simplification.
K Kritivasan, CEO and Managing Director, TCS, said customer demand for these initiatives continues to support trade conversion and AI-driven business growth.
Strengthening partnerships
TCS also used the quarter to strengthen partnerships across the AI ecosystem.
The company announced a strategic partnership with Anthropic to offer Claude to 50,000 employees in engineering, finance, legal, marketing, and sales through enterprise-wide licensing. TCS said it will create a dedicated business unit focused on providing industry solutions and services around Anthropic’s Claude family of models.
In a separate move, TCS has become the first global systems integrator partner for Mistral Forge, a platform that helps enterprises build AI models using their own business knowledge and domain-specific data.
The company also expanded its collaboration with ServiceNow and Google Cloud as part of its efforts to support large-scale enterprise AI deployments and autonomous operating models.
According to President and Chief Operating Officer Aarthi Subramanian, the company’s recent awards validate the demand for AI-driven IT operations, software engineering, modernization programs, process redesign, and autonomous business services.
She also highlighted new partnerships with Anthropic and Mistral as part of TCS’ expanding AI ecosystem strategy.
Helping enterprises establish AI-native GCC
Beyond client engagement and partnerships, TCS has launched a new Global Value & Innovation Center business unit to help companies establish AI-native global capability centers and modernize existing GCC operations. The business unit will focus on supporting enterprises as GCC takes on a greater role in innovation, engineering, and business transformation efforts.
The company also launched an Oracle AI Data Platform Lab and Center of Excellence in Kolkata to expand its enterprise AI capabilities in India, with plans to expand this effort to further cities.
TCS’ revenue for the quarter ended June 30, 2026 was Rs 72,275 crore, up 13.9% year-on-year, while AI’s annual revenue stood at USD 2.6 billion, up 13.6% quarter-on-quarter. Total contract value for the quarter was $9.5 billion.
This quarter provides a channel ecosystem perspective on how enterprise AI spending is evolving. Across manufacturing, utilities, healthcare, human resources, and retail, customers are applying AI to operational environments that directly support how they run their business, manage technology, and deliver services.
Rather than treating AI as a standalone technology initiative, companies are embedding AI into the operating model itself.
