TCS CEO warns retail and travel clients may be impacted by US tariffs

From Yahoo Finance: 2025-04-13 04:39:00

Tata Consultancy Services (TCS) CEO mentioned that clients in retail, travel, and automobile sectors face U.S. tariff fallout, potentially leading to cost-cutting. However, the banking sector, a significant revenue source, remains unaffected. The global trade war and uncertainty around tariffs are making businesses wary of big spending decisions.

TCS earns half its revenue from North America, a crucial market. The company missed fourth-quarter earnings estimates and warned of client delays in discretionary projects. Despite this, TCS expects the uncertainty to be short-lived and anticipates fiscal year 2026 to be better than 2025.

Krithivasan highlighted the trend of clients consolidating IT vendors, benefiting TCS. He mentioned that cost optimization drives clients to reduce service providers, leading to TCS gaining market share. The company remains optimistic about future prospects and expects to benefit from legacy software replacements in the medium-to-long term.



Read more at Yahoo Finance: India’s TCS says retail, travel clients more exposed to US tariff turmoil