TCS Shares Surge After Strong AI Revenue Growth
Tata Consultancy Services shares rose over 5% following strong second-quarter results and AI growth, despite a US government suspension from the PERM visa program.
Shares of Tata Consultancy Services surged over 5% on October 9, 2026, triggering a broad rally across Indian IT stocks. The jump followed the company's fiscal second-quarter results, which showed a consolidated net profit of Rs 13,884 crore for the September quarter, representing a 4% sequential increase. The company also reported annualised AI revenue of $3.1 billion.
Market optimism regarding AI growth overshadowed news that the United States government suspended several technology firms from the Permanent Labor Certification Program (PERM). The suspension affects Tata Consultancy Services, Infosys, Wipro, Cognizant, and HCL as part of investigations into alleged visa fraud and employment practices.
Tata Consultancy Services stated the suspension is unlikely to impact its customer engagements or workforce strategy, noting that its PERM applications have remained in single digits for two years. The company continues its plan to hire 15,000 additional employees in the United States over the next five years.
