US Tariff impact: TCS earnings reduced by InCred Equities

With the looming uncertainty due to rising trade tensions and economic uncertainties on the back of Trump tariffs, brokerage firms are trimming their earnings estimates for the IT services players. In line with this, InCred Equities has trimmed its earnings estimates for Tata Consultancy Services (TCS) to ‘account for tariff-led uncertainty’. The brokerage firm had, earlier last month, also maintained that the news flow on tariffs from the US is not constructive for earnings upgrade and decision-making, and that the “first-order impact could be trimming of P/E multiples followed by a second-order impact of potential earnings downgrade”.