Bengaluru, April 9 -- Tata Consultancy Services (TCS) closed 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 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...