TCS down nearly 3% after muted Q4 dollar revenue: What’s the big worry now?

The Tata Consultancy Services share price is down nearly 3% after the tech major reported its quarterly earnings for the fourth quarter. While the headline profit numbers saw double-digit growth on a year-on-year basis, the street is worried about the subdued growth outlook and margins missing estimates.

TCS Q4: Key concern for the markets

TCS’ higher exposure to application-managed services is also seen as a potential worry, posing risks to its growth amid AI-led deflation. The company also announced wage hikes across all grades.