TCS share price targets by 18 analysts: Buy, hold or sell after Q1 results?
TCS Q1 results review: Dolat Capital said the management commentary indicated bottoming out of demand depression and gradual recovery moving ahead.
- Jul 10, 2026,
- Updated Jul 10, 2026 10:23 AM IST
The June quarter results of Tata Consultancy Services Ltd (TCS) suggested that demand momentum is showing early signs of recovery, with the management citing a pent-up technology backlog and expressing optimism for the second quarter. While a handful of brokerages recommended a 'Buy' on the stock, a few others preferred to wait for greater earnings visibility and retained their 'Hold' ratings amid near-term uncertainty.
Biswajit Maity, Senior Principal Analyst at Gartner said TCS's Q1 FY27 performance demonstrated resilience amid continued market uncertainty, with revenue increasing 13.9 per cent YoY and deal momentum remaining strong. Growth was driven by enterprise demand for AI, cloud modernization, cybersecurity, and business transformation, areas where TCS continues to expand its capabilities and partnerships, he said.
"As the company strengthens its positioning as an end-to-end transformation partner rather than solely an execution provider, it remains well placed to benefit from the accelerating adoption of large-scale AI-led initiatives across industries," Maity said.
TCS Q1 results: What brokerages say TCS expects demand to improve in Q2, supported by a pent-up technology backlog and stronger client conversations. While MOFSL also expects Q2 to be better, it believes evidence around demand improvement is scant.
"The pent-up demand narrative has been around for some time, while geopolitics, tariff uncertainty and cautious discretionary spending continue to weigh on decision-making. We continue to expect FY27 demand to remain muted. Commentary, however, is better than we expected," it said.
The brokerage kept its estimates unchanged and reiterated 'Buy' on the stock with a target of Rs 2,350.
Antique said TCS scaled up its AI business to an annualized revenue run rate of $2.6 billion, up 13.6 per cent QoQ. On the deal front, it reported TCV of $9.5bn, ahead of Antique's expectation of $8.5 billion. However, deal conversion timelines remained elongated.
"We roll forward our valuation to 1HFY29E (from FY28E) and raise our target price to Rs 2,385 (from Rs 2,350), while maintaining our HOLD rating and target multiple of 14x P/E," Antique said.
Systematix said TCS is likely to minimise its revenue growth gap with peers in FY27, supported by net-new large deals, and potential pick-up in developed markets. It maintained 'Hold' and suggested a TCS target price of Rs 2,320.
JM Financial said TCS has continued to focus on revenue growth and said it will not shy away from investments. Execution to be monitored, it said as it suggested an unchanged target of Rs 2,205 on the stock.
Nuvama said TCS appears to be well set for recovery in FY27, given its commentary and strong hiring in Q1. Deal wins have been decent, margins solid and AI revenue is growing strong, it said.
"We minutely tweak our FY27/28 EPS estimates. Retain ‘BUY’ with a target of R s,000 (earlier Rs 3,350) valuing the stock at 18x FY28PE (earlier 20x). Valuations (13x FY27E PE), post-recent correction, are highly attractive," it said.
Dolat Capital said the management commentary indicated bottoming out of demand depression and gradual recovery moving ahead. Also, it negated the fear of any meaningful pricing compression on AI, Dolat Capital said. "Amid recent price correction, and exciting payout yield we now assign Buy rating on the stock with a target of Rs. 2,580," it said.
Anand Rathi has maintained 'Buy' rating on the TCS stock. Centrum Broking maintained 'Buy' and suggested a revised target price of Rs 3,480 from Rs 3,841 earlier. It said record deal wins, growing enterprise adoption of AI-led transformation, and improving client confidence provide strong medium-term revenue visibility despite near-term macro uncertainties.
360 ONE Capital said despite benign valuations, the scope for a near-term re-rating remains limited, as AI-led disruptions, pricing pressures and a subdued macro environment continue to weigh on growth expectations and investor sentiment. "We maintain our Hold rating with an unchanged target price of Rs 2,290 (14x FY28E EPS)," it said.
Nirmal Bang Institutional Equities said TCS’s revenue and order book growth have remained a concern since the past 4-5 quarters as AI led deflation started to materialise and productivity gains are realised faster than additional work can replace the deflation.
"We remain underweight on the sector for CY26 due to GenAI led two sided pressure explained in our sector review – Pain coming earlier than expected. Post-1QFY27, our revenue, EBIT, and EPS estimates remain unchanged. We believe that there is high uncertainty in revenue and profit growth in the short and medium term. We reiterate our ‘SELL’ rating on TCS and value it at an unchanged multiple of 12x on Mar-28E EPS for a slightly lower TP of Rs1,682 (vs earlier 1,693," it said.
Deal bookings gave reasonable growth visibility, Nomura India said as it revised upward its target to Rs 2,590 from Rs 2,570 earlier. "Like previous years, we believe TCS will endeavour to recoup the margin dip through the year and exit 4QFY27F with 25 per cent-plus EBIT margin," the foreign brokerage said.
Among global brokerages, Goldman Sachs maintained 'Buy' on the stock with a revised target of Rs 2,370 from Rs 2,410 earlier. Morgan Stanley suggested Equal Weight on the stock with a target of Rs 2,200.
Read more: This is what 18 brokerages had said on TCS post Q4 results
SBI Securities maintained a 12–18-month fair value of Rs 2,700-2,800 per share on TCS. Choice Broking sees near-term pressure, adding that TCS' long-term story stayed intact.This brokerage suggested 'Buy' and a target of Rs 2,320 on TCS. Elara Securities maintained 'Accumulate' on the stock with a lower target price of Rs 2,300 from Rs 2,780 earlier.
Meanwhile, Equirus Securities said TCS' Q1 results were marginally better than its expectations sequentially and on recurring EBIT margin. After muted employee additions in the past few quarters and FY26, TCS increased its headcount by 1.6 per cent QoQ in the June quarter. This was the highest addition in the last 15 quarters. "We await more consistency of considerable growth turn around, if any, ahead," it said while keeping the stock rating under review.
The June quarter results of Tata Consultancy Services Ltd (TCS) suggested that demand momentum is showing early signs of recovery, with the management citing a pent-up technology backlog and expressing optimism for the second quarter. While a handful of brokerages recommended a 'Buy' on the stock, a few others preferred to wait for greater earnings visibility and retained their 'Hold' ratings amid near-term uncertainty.
Biswajit Maity, Senior Principal Analyst at Gartner said TCS's Q1 FY27 performance demonstrated resilience amid continued market uncertainty, with revenue increasing 13.9 per cent YoY and deal momentum remaining strong. Growth was driven by enterprise demand for AI, cloud modernization, cybersecurity, and business transformation, areas where TCS continues to expand its capabilities and partnerships, he said.
"As the company strengthens its positioning as an end-to-end transformation partner rather than solely an execution provider, it remains well placed to benefit from the accelerating adoption of large-scale AI-led initiatives across industries," Maity said.
TCS Q1 results: What brokerages say TCS expects demand to improve in Q2, supported by a pent-up technology backlog and stronger client conversations. While MOFSL also expects Q2 to be better, it believes evidence around demand improvement is scant.
"The pent-up demand narrative has been around for some time, while geopolitics, tariff uncertainty and cautious discretionary spending continue to weigh on decision-making. We continue to expect FY27 demand to remain muted. Commentary, however, is better than we expected," it said.
The brokerage kept its estimates unchanged and reiterated 'Buy' on the stock with a target of Rs 2,350.
Antique said TCS scaled up its AI business to an annualized revenue run rate of $2.6 billion, up 13.6 per cent QoQ. On the deal front, it reported TCV of $9.5bn, ahead of Antique's expectation of $8.5 billion. However, deal conversion timelines remained elongated.
"We roll forward our valuation to 1HFY29E (from FY28E) and raise our target price to Rs 2,385 (from Rs 2,350), while maintaining our HOLD rating and target multiple of 14x P/E," Antique said.
Systematix said TCS is likely to minimise its revenue growth gap with peers in FY27, supported by net-new large deals, and potential pick-up in developed markets. It maintained 'Hold' and suggested a TCS target price of Rs 2,320.
JM Financial said TCS has continued to focus on revenue growth and said it will not shy away from investments. Execution to be monitored, it said as it suggested an unchanged target of Rs 2,205 on the stock.
Nuvama said TCS appears to be well set for recovery in FY27, given its commentary and strong hiring in Q1. Deal wins have been decent, margins solid and AI revenue is growing strong, it said.
"We minutely tweak our FY27/28 EPS estimates. Retain ‘BUY’ with a target of R s,000 (earlier Rs 3,350) valuing the stock at 18x FY28PE (earlier 20x). Valuations (13x FY27E PE), post-recent correction, are highly attractive," it said.
Dolat Capital said the management commentary indicated bottoming out of demand depression and gradual recovery moving ahead. Also, it negated the fear of any meaningful pricing compression on AI, Dolat Capital said. "Amid recent price correction, and exciting payout yield we now assign Buy rating on the stock with a target of Rs. 2,580," it said.
Anand Rathi has maintained 'Buy' rating on the TCS stock. Centrum Broking maintained 'Buy' and suggested a revised target price of Rs 3,480 from Rs 3,841 earlier. It said record deal wins, growing enterprise adoption of AI-led transformation, and improving client confidence provide strong medium-term revenue visibility despite near-term macro uncertainties.
360 ONE Capital said despite benign valuations, the scope for a near-term re-rating remains limited, as AI-led disruptions, pricing pressures and a subdued macro environment continue to weigh on growth expectations and investor sentiment. "We maintain our Hold rating with an unchanged target price of Rs 2,290 (14x FY28E EPS)," it said.
Nirmal Bang Institutional Equities said TCS’s revenue and order book growth have remained a concern since the past 4-5 quarters as AI led deflation started to materialise and productivity gains are realised faster than additional work can replace the deflation.
"We remain underweight on the sector for CY26 due to GenAI led two sided pressure explained in our sector review – Pain coming earlier than expected. Post-1QFY27, our revenue, EBIT, and EPS estimates remain unchanged. We believe that there is high uncertainty in revenue and profit growth in the short and medium term. We reiterate our ‘SELL’ rating on TCS and value it at an unchanged multiple of 12x on Mar-28E EPS for a slightly lower TP of Rs1,682 (vs earlier 1,693," it said.
Deal bookings gave reasonable growth visibility, Nomura India said as it revised upward its target to Rs 2,590 from Rs 2,570 earlier. "Like previous years, we believe TCS will endeavour to recoup the margin dip through the year and exit 4QFY27F with 25 per cent-plus EBIT margin," the foreign brokerage said.
Among global brokerages, Goldman Sachs maintained 'Buy' on the stock with a revised target of Rs 2,370 from Rs 2,410 earlier. Morgan Stanley suggested Equal Weight on the stock with a target of Rs 2,200.
Read more: This is what 18 brokerages had said on TCS post Q4 results
SBI Securities maintained a 12–18-month fair value of Rs 2,700-2,800 per share on TCS. Choice Broking sees near-term pressure, adding that TCS' long-term story stayed intact.This brokerage suggested 'Buy' and a target of Rs 2,320 on TCS. Elara Securities maintained 'Accumulate' on the stock with a lower target price of Rs 2,300 from Rs 2,780 earlier.
Meanwhile, Equirus Securities said TCS' Q1 results were marginally better than its expectations sequentially and on recurring EBIT margin. After muted employee additions in the past few quarters and FY26, TCS increased its headcount by 1.6 per cent QoQ in the June quarter. This was the highest addition in the last 15 quarters. "We await more consistency of considerable growth turn around, if any, ahead," it said while keeping the stock rating under review.