BENGALURU (Reuters) -Tata Consultancy Services, India’s top software services exporter, beat quarterly revenue estimates on Thursday, aided by growth in its banking, financial services and insurance vertical despite U.S. tariff-related uncertainty and mounting risks from a tightening U.S. visa regime.
Consolidated sales rose 2.4% year-on-year to 657.99 billion rupees ($7.4 billion) in the July-to-September quarter, beating analysts’ average estimate of 650.86 billion rupees, according to data compiled by LSEG.
India’s largest IT firm reported strong performance in the banking vertical, while revenue from its consumer, healthcare, and manufacturing verticals fell.
Profit for the quarter rose 1.4% to 120.75 billion rupees, missing analysts’ average estimate of 126.29 billion rupees.
By geography, revenue from its largest market of North America dipped 0.1%, United Kingdom fell 1.9% and Continental Europe declined 3%. Revenue from Asia Pacific grew 2%.
TCS’ total order bookings stood at $10 billion during the quarter, compared to $9.4 billion in the previous quarter and $8.6 billion in the year-ago period. Last month, the company announced a $644 million deal from Scandinavian insurer Tryg.
India’s $283 billion IT sector faces an uncertain demand environment as steep U.S. tariffs have led to uncertainty, particularly in North America, its largest market.
A proposed 25% tax on American firms using foreign outsourcing services could also hurt amid a looming visa fee hike for H-1B visas that Indian IT firms rely on to rotate skilled talent into U.S. projects. TCS secured the second-highest number of H-1B visa approvals last fiscal.
In July, the firm said it will reduce its workforce by 2% in fiscal year 2026, primarily affecting middle and senior management.
TCS was the first Indian tech major to report results. Smaller peers Infosys, HCLTech, Tech Mahindra and LTIMindtree will report their numbers next week.
Its shares closed 1.1% up ahead of the results.
($1 = 88.7910 Indian rupees)
(Reporting by Haripriya Suresh; Editing by Sonia Cheema and Mrigank Dhaniwala)
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