TCS Q1 FY27 Preview: Can Earnings Trigger a Trend Reversal?

Tata Consultancy Services (TCS) is set to announce its Q1 FY27 results on 9th July, officially kicking off the IT earnings season. Street estimates suggest revenue of around ₹72,024 crore (₹720.24 billion), while earnings per share (EPS) are expected at ₹37.24, translating into an estimated net profit of ₹12,300–12,600 crore. Investors will closely watch management's commentary on deal wins, AI-led opportunities, client spending trends, margins, and the overall demand outlook for FY27. With expectations already muted due to delayed discretionary IT spending, any positive surprise could significantly improve market sentiment. Technically, TCS continues to trade in a long-term downtrend on the weekly chart, remaining below its 10, 20, 50, 100, and 200-week moving averages, which indicates persistent selling pressure. However, the stock is now trading near a crucial support zone of ₹2,000–1,950. The RSI has slipped to nearly 24, placing the stock in the oversold territory, suggesting that downside momentum may be limited if earnings meet or exceed expectations. On the upside, the first resistance is placed around ₹2,180–2,220, followed by ₹2,360, where the 20-week EMA is positioned. A better-than-expected earnings performance, strong deal wins, stable margins, or an optimistic management outlook could trigger short covering and a relief rally towards these levels. On the other hand, disappointing results or cautious guidance may result in a breakdown below ₹2,000, opening the door for further weakness towards ₹1,950 and ₹1,800. Overall, the market is entering the results with conservative expectations. The management commentary is likely to be the key catalyst in deciding whether TCS can stage a meaningful recovery or whether the prevailing long-term bearish trend will continue.