bengaluru, April 10 -- Tata Consultancy Services (TCS) closed fiscal year 2026 (FY26) with a modest recovery in quarterly growth, but not enough to offset a broader slowdown that pushed it into its first full-year revenue decline in dollar terms since listing. The results underscore a shifting demand environment, where macro uncertainty and the early impact of artificial intelligence (AI) are beginning to weigh on the information technology (IT) services giant's traditional growth model, even as the company expects a gradual recovery in FY27. On Thursday, TCS reported a 0.5% decline in full-year revenue in dollar terms to $30.08 billion, alongside a 3.5% rise in net profit. In the fourth quarter, revenue grew 1.5% sequentially to $7.62 billion, indicating a mild pickup in momentum toward the end of the year. Much of the annual decline was driven by weakness in its India business, whose revenue fell 32% during the period. In rupee terms, revenue trends differed due to currency movements. Fourth quarter revenues registered a 5.4% sequential rise to Rs.70,698 crore and full-year revenue rose 4.6% to Rs.2,67,021 crore. The company's management struck an optimistic note on the outlook for FY27, amid heightened macro volatility, particularly due to the West Asia conflict. K. Krithivasan, chief executive of TCS, said during the post-earnings analyst call on Thursday that despite global uncertainty, the company continues to see strong client engagement and long-term deal commitments, positioning it for improved performance in the coming year. The fall in full-year revenue was anticipated by experts, with TCS's final number beating a Bloomberg estimate of 46 analysts of $28.55 billion. "Results are in line with expectations; a revenue decline was baked in last year itself," said Sushovon Nayak, lead IT analyst at Anand Rathi Institutional Equities....