TCS Stock Plunges 21% in 2025, Worst Annual Performance Since 2008

• Tata Consultancy Services (TCS) shares dropped 21% in 2025, marking its steepest annual decline since 2008's 56% fall during the Global Financial Crisis.
• Despite the stock dip, TCS is aggressively pursuing AI growth, aiming to be the largest AI-led tech services provider, with $1.5 billion in annualised AI revenue.
• The company made a significant $700 million acquisition of Coastal Cloud and committed $6.5 billion for data centre capacity, signaling an aggressive M&A strategy.
• Broader Indian IT sector faces headwinds, including regulatory uncertainty around US H-1B visa policies and a proposed $100,000 fee, impacting investor confidence.
• Analyst sentiment remains largely positive, with 36 out of 51 analysts recommending a 'Buy' rating for TCS despite current challenges.

Why It Matters: TCS faces stock decline and sector headwinds but bets big on AI and strategic acquisitions for future growth.