Tata Consultancy Services (TCS) saw its shares rise as high as 6.11% to ₹2,202.9 on the NSE on Friday, October 9, following the release of its Q2 FY27 results and the U.S. government’s announcement of a suspension of the Permanent Labor Certification Program (PERM). The rally reflected market attention to the company’s statement that the suspension would not materially affect its workforce strategy or customer engagements, citing a robust campus recruitment model and a significant local workforce across 31 U.S. offices and delivery centres.

In its October 9 statement, TCS confirmed it would comply with any Department of Labor directive and that its PERM applications had been in single digits over the past two years. The company emphasized that the suspension would not impact its workforce strategy or customer engagements, and reiterated its plan to add 15,000 U.S. employees over the next five years.

TCS reported a 15% increase in net profit to ₹13,884 crore for the July-September quarter, up from ₹13,349 crore in the preceding September quarter and ₹12,075 crore in the year-ago period. Revenue from operations rose 11.22% to ₹73,188 crore, compared with ₹65,799 crore a year earlier, while the June quarter topline stood at ₹72,275 crore. The company’s AI front contributed about 10% of overall revenue, with annualised revenue rising to $3.1 billion from $2.6 billion in the prior quarter.

Chief Operating Officer Aarthi Subramanian noted that AI revenues were growing fastest in banking, financial services, insurance, manufacturing and life sciences verticals. New deal signings totaled $9.6 billion for July-September, slightly up from $9.5 billion a quarter earlier. Chief Financial Officer Samir Seksaria reported an overall operating margin of 24%, unchanged from the previous quarter, and stated that profit margins on AI deals were higher than the company’s average. Seksaria cautioned that acquisitions could weigh on margins in the second half of FY27.

Analysts offered mixed views after the Q2 results. Goldman Sachs, Nomura and JPMorgan remained positive, while Citi and Jefferies maintained bearish stances. HSBC, CLSA and Morgan Stanley were cautious, and Kotak Institutional Equities stayed constructive. Common concerns included limited visibility on sustained growth recovery, margin pressures from reinvestments and acquisitions, and the timing of a return to the aspirational 26–28% EBIT margin range.

Goldman Sachs highlighted that revenue growth matched estimates but EBIT margins fell short, citing flat margins despite international growth and no wage‑hike headwinds. Citi noted a 2.8% year‑on‑year revenue rise in constant currency against a 3.3% decline in the prior quarter, with EBIT margins down 120 basis points. HSBC observed positive trends in banking and technology verticals but noted laggards in U.S. consumer and energy sectors, and it slightly lowered margin estimates while maintaining undemanding valuations.