<p>Shares of Tata Consultancy Services fell nearly 3% on Friday after a rare annual revenue drop outweighed strong deal wins and a quarterly earnings beat, suggesting sustained growth recovery remains elusive amid weak client spending and rising costs.</p><p>The stock was on track for its worst day in nearly a month and was set to snap a six-session gaining streak.</p><p>It was the third-biggest decliner on the IT index and the benchmark Nifty 50.</p>.TCS Q4 net profit up 12% at Rs 13,718 crore.<p>The IT index was down 2.2%, even as the Nifty 50 was trading 0.9% higher.</p><p>TCS beat fourth-quarter earnings estimates and reported $12 billion in deal wins, but analysts were disappointed by a 2.4% drop in its full-year dollar revenue - its first annual decline since listing.</p>.TCS Q3 profit falls 14% on labour code impact; AI revenue jumps to $1.8 billion.<p>Despite sequential improvement during the quarter, the full-year revenue drop underlined prolonged caution in clients' technology budgets, said Dolat Capital.</p><p>Jefferies analysts echoed the view, saying the results offered limited evidence of any meaningful uptick in demand and that an uncertain growth outlook could drive underperformance in the stock.</p><p>U.S.-listed shares of TCS' smaller rivals Infosys and Wipro also lost nearly 2% overnight.</p><p>While TCS' margins edged up 10 basis points during the quarter, analysts cautioned that upside could be limited.</p><p>BOBCaps said higher subcontracting costs, wage hikes and continued investments in AI platforms could cap near-term margin expansion.</p><p>TCS shares have slumped nearly 20.5% so far this year, compared with a 19% drop in the IT index, as concerns of AI-led disruption and weak client spending persist. The benchmark Nifty 50 index is down 8.2% year-to-date.</p><p>(Reporting by Kashish Tandon in Bengaluru; Editing by Sumana Nandy)</p>
<p>Shares of Tata Consultancy Services fell nearly 3% on Friday after a rare annual revenue drop outweighed strong deal wins and a quarterly earnings beat, suggesting sustained growth recovery remains elusive amid weak client spending and rising costs.</p><p>The stock was on track for its worst day in nearly a month and was set to snap a six-session gaining streak.</p><p>It was the third-biggest decliner on the IT index and the benchmark Nifty 50.</p>.TCS Q4 net profit up 12% at Rs 13,718 crore.<p>The IT index was down 2.2%, even as the Nifty 50 was trading 0.9% higher.</p><p>TCS beat fourth-quarter earnings estimates and reported $12 billion in deal wins, but analysts were disappointed by a 2.4% drop in its full-year dollar revenue - its first annual decline since listing.</p>.TCS Q3 profit falls 14% on labour code impact; AI revenue jumps to $1.8 billion.<p>Despite sequential improvement during the quarter, the full-year revenue drop underlined prolonged caution in clients' technology budgets, said Dolat Capital.</p><p>Jefferies analysts echoed the view, saying the results offered limited evidence of any meaningful uptick in demand and that an uncertain growth outlook could drive underperformance in the stock.</p><p>U.S.-listed shares of TCS' smaller rivals Infosys and Wipro also lost nearly 2% overnight.</p><p>While TCS' margins edged up 10 basis points during the quarter, analysts cautioned that upside could be limited.</p><p>BOBCaps said higher subcontracting costs, wage hikes and continued investments in AI platforms could cap near-term margin expansion.</p><p>TCS shares have slumped nearly 20.5% so far this year, compared with a 19% drop in the IT index, as concerns of AI-led disruption and weak client spending persist. The benchmark Nifty 50 index is down 8.2% year-to-date.</p><p>(Reporting by Kashish Tandon in Bengaluru; Editing by Sumana Nandy)</p>