Tata Consultancy Services (TCS) CEO K Krithivasan said there is a small, positive bias in the macroeconomic environment now, with teams being more positive in comparison to the first quarter of the financial year 2026. Speaking to the Economic Times, the executive of the IT firm said that the second half of the ongoing financial year 2026 definitely looks better than the first half.
Krithivasan said that the IT major reported about several projects getting paused or deferred as an aftermath of Trump's harsh tariffs in the first quarter of the financial year 2026. However, that reduced in the second quarter, whose results were announced earlier last week. "Our teams are sounding more positive," he said, while adding that all geographies have done well for the company.
"Almost all verticals except consumer business have done well. So, there is a sense of optimism. It's too early to say everything is behind us but teams are more positive compared to Q1," he further told the newspaper.
'Clients have taken a long-term view'
Krithivasan said that after the initial impact of Trump's tariffs, clients have taken a long-term view following discussions for the last six to nine months. He noted that consumer business, especially discretionary retail, seems to be impacted the most. He however added that the second half of the year is definitely looking better than the first half.
Krithivasan on US visa fee hike:
Speaking about Trump's recent announcements on US visa fee hike, Krithivasan said that the company has been reducing the number of employees sent abroad. "In the current financial year so far, we sent just about 500 people on H-1B to the US. So, it is very wrong to say that there is a huge dependence on the US visa and also, we are more importantly looking at a larger workforce transformation. So, we believe that gives us a greater opportunity to hire more locally," he said.
Krithivasan on TCS layoffs:
On being asked about TCS layoffs, Krithivasan explained that they were not announced as they wished to cut costs, or because AI was making their jobs redundant. "We announced this because as part of our larger strategy of becoming the world's largest AI-led organisation, we said our workforce has to be future-ready," he said.
TCS Q2 results:
TCS on October 9 reported a 1.4 percent year-on-year rise in consolidated net profit to Rs 12,075 crore for the quarter ended September 30, 2025, slightly below Street estimates. Its revenue for the quarter stood at Rs 65,799 crore, marking a 3.7 percent sequential rise and 0.8 percent growth in constant currency terms.
TCS share price history:
TCS shares were trading in the red on October 13, dropping nearly 1 percent to hover around Rs 3,001.50 apiece. The stock has fallen nearly 4 percent in the past one month, and around 8 percent in the past six months.
The stock's P/E ratio currently stands at around 22.
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