K. Krithivasan

TCS's AI revenue is growing rapidly, from $2.3B to $2.6B annualized (7-8% of total revenue), with 15% QoQ growth and potential to accelerate to 25% QoQ. The CEO expects AI revenue to reach roughly 20% of total revenue within 4 to 6 quarters. TCS differentiates through a five-layer AI stack (data infrastructure, models, agents, applications, physical AI), unique offerings like Hyperwall and Secure Solar in Cloud, partnerships with major frontier model companies, and in-house small language model capabilities. The company can manage the 10-15% productivity-led top-line deflation and protect margins through proactive customer engagement and backlog. AI agents (3,000+ deployed for customers) will drive productivity, allowing TCS to deliver more value without linear headcount growth, supporting operating leverage.