Prabhudas Lilladher Recommends 'BUY' on TCS with Rs 4040 Target

• Tata Consultancy Services (TCS) revenue performance (+0.8% QoQ CC) exceeded estimates, driven by broad-based growth.
• International business grew 0.4% QoQ CC, with BFS expected to return to positive growth from Q4.
• AI revenue stream showed strong uptick, reporting an annualized run-rate of USD1.8bn (+17.3% QoQ CC).
• Management is confident in sustaining international revenue growth, especially in North America.
• Prabhudas Lilladher revised operating margin estimates upwards for FY26E/FY27E/FY28E and assigned a target price of Rs 4040, maintaining a 'BUY' rating.

Why It Matters: Prabhudas Lilladher recommends buying TCS, citing strong revenue, AI growth, and improved international outlook.