Tata Consultancy Services shares rise ahead of Q2 earnings

Tata Consultancy Services (TCS) shares rose approximately 2% ahead of the company's second-quarter fiscal year 2027 earnings announcement and potential dividend declaration. Investors are monitoring the stock as the board is expected to consider a second interim dividend for the current fiscal year, with October 14, 2026, designated as the potential record date.

Analysts have provided varying outlooks for the upcoming results. Kotak Institutional Equities forecasts modest sequential revenue growth of 0.5% driven by international business, though it anticipates a 100 basis point year-on-year margin decline due to wage revisions and pricing pressures. The firm expects a Total Contract Value (TCV) of $10-11 billion. Anand Rathi suggests the quarter may outperform the first quarter due to an uptick in July and August, though September may face headwinds from rate hikes and weakness in the Middle East manufacturing and retail sectors.

Historically, TCS has declared incrementally higher dividends following Q2 results. In the previous fiscal year, the company announced total dividends of Rs 126 per share.