Wipro ADR, Infosys ADR Jumped After TCS Q1 Results; Here's Why

Two Indian tech American depositary receipts (ADRs) surged by 1% to 2% after Tata Consultancy Services (TCS) earnings for the June 2026 quarter of FY27. These two ADRs are of TCS ' rival companies namely, Infosys and Wipro. The reason for the upside in these ADRs is because TCS posted Q1 broadly in-line with estimates, which restores faith for investors in upcoming tech earnings.

Infosys ADRs, Wipro ADRs

After the TCS earnings report, both Infosys and Wipro rose yesterday at the NYSE exchange. Infosys ADR outperformed with over 1.8% upside to close at $11.13. While Wipro ADR also surged by 1.09% to end at $1.850.

What Are ADRs?

An ADR is a security that represents shares of non-U.S. companies that are held by a U.S. depositary bank outside the United States ("U.S."). ADRs allow U.S. investors to invest in non-U.S. companies and give these non-US companies an easier-access to the U.S. capital markets. Many non-U.S. issuers use ADRs as a means of raising capital or establishing a trading presence in the U.S.

Why Did Infosys and Wipro ADRs Surge Overnight?

In Q1FY27, TCS posted a consolidated net profit of Rs 13,349 crore, registering a growth of 5% YoY compared to Rs 12,760 crore profit in the same quarter a year ago. However, Q1 PAT declined by 3% from net profit of Rs 13,718 crore in Q4FY26.

On the top-line front, TCS reported a consolidated revenue from the operations stood at Rs 72,275 crore in Q1FY27, which is higher by 14% from revenue of Rs 63,437 crore in Q1FY26 and up by 2.2% from Rs 70,698 crore in Q4FY26.

Furthermore, TCS bagged $9.5 billion of TCV deals. Of these, TCS signed a $ 800 million mega deal with SKF, while multi-million-dollar strategic partnership agreement with ServiceNow and Europe-based Fortune Global 50.

K Krithivasan, Chief Executive Officer and Managing Director, said "Q1 FY27 reflects continued growth momentum and the strength of our strategic positioning, despite geopolitical and macro-economic headwinds. We delivered a strong order book of $9.5 billion, including a marquee AI-led transformation deal with SKF, while continuing to add clients across key revenue bands and scaling our AI business to a $2.6 billion annualized revenue run rate. "

He added, "As customers accelerate investments in AI, modernization, cybersecurity, sovereign cloud and platform simplification, our strong deal conversion, improving client mining and expanding ecosystem partnerships position TCS well to translate opportunity into sustained growth".

According to analysts at Choice Institutional Equities, TCS reported a largely in-line Q1FY27, with stable revenue despite a challenging macro environment. BFSI and Technology supported growth, while Consumer, Manufacturing and HLS remained weak amid subdued discretionary spending. Deal momentum stayed healthy, with AI annualised revenue rising to $ 2.6 billion.

Going ahead, for TCS, analysts said, "AI-driven productivity will be a near-term headwind for traditional services, with the impact gradually offset by higher AI transformation spending and broader enterprise adoption. Near-term macro uncertainty, combined with weak demand, client delays and a gradual expanding AI adoption should defer broad-based growth."

Hence, TCS broadly in-line earnings was enough to make investors hopeful of similar growth in other tech giants like Infosys and Wipro who will declare their earnings in July as well.

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