Tag: ABB

  • TCS and ABB Expand Partnership with AI-Driven Multi-Year Network Operations Deal

    TCS and ABB Expand Partnership with AI-Driven Multi-Year Network Operations Deal

    Tata Consultancy Services (TCS) and ABB have announced an expanded collaboration to transform ABB’s global network operations using AI. The multi-million, multi-year agreement marks the next phase of a 20-year partnership and will see TCS take on end-to-end network operations through an integrated network-as-a-service model.

    Under the deal, TCS will design, integrate, and run ABB’s global network ecosystem as a secure, modern, and AI-driven service. The core initiative is ABB’s Future Network Model programme, an enterprise-wide effort to replace fragmented network environments with a standardized, centrally managed digital infrastructure. TCS will orchestrate ABB’s multi-vendor environment and deploy a centralized control framework that includes service integration and management (SIAM), a global network operations center, advanced security capabilities, and modernized LAN, WAN, and software-defined WAN systems.

    “The Future Network Model represents an important milestone in reinforcing the digital foundation of ABB’s global operations,” said Alec Joannou, Group CIO at ABB. “Our association with TCS reflects a shared focus on delivery excellence, continuous enhancement, and building capabilities that can support our strategic priorities.”

    Anupam Singhal, President of Manufacturing at TCS, added: “With AI embedded into the network operations model, supported by secure digital infrastructure and our deep domain expertise, we are bringing our ‘infrastructure to intelligence’ approach to build a resilient, intelligent network backbone. This engagement will enable network systems that can sense, adapt, and improve continuously.”

    The expanded collaboration builds on two decades of joint transformational programmes, including consolidating multiple ERP systems into a unified SAP platform and accelerating cloud adoption. TCS expects the deal to improve user experience, enhance operational efficiency, strengthen security and compliance, and scale service delivery for ABB.

  • TCS Stock Surges 6% on Strong Q1 FY27 Earnings and ABB AI Deal: Analyst Outlook and Key Risks

    TCS Stock Surges 6% on Strong Q1 FY27 Earnings and ABB AI Deal: Analyst Outlook and Key Risks

    Tata Consultancy Services (TCS) shares rallied for a second consecutive session, climbing up to 4% to an intraday high near ₹2,133, making it the top gainer on the Nifty 50 index. The stock’s upward momentum followed the IT giant’s better-than-expected June-quarter results and a landmark multi-year AI partnership with ABB, which together fueled a 3% rise in the Nifty IT index and snapped a two-day sector-wide losing streak.

    What TCS Actually Reported

    TCS delivered quarterly revenues of ₹72,275 crore, surpassing analyst estimates, with a year-over-year net profit growth of 4.61%. Constant-currency revenue growth also exceeded expectations. However, operating margins contracted to 24%, down 130 basis points from the previous quarter, primarily due to wage hikes.

    The standout metric was deal wins: TCS secured total contracts worth $9.5 billion in the quarter, including one mega deal, comfortably beating management’s own forecasts. The company’s artificial intelligence business reached an annualized run rate of $2.6 billion, registering nearly 14% quarter-over-quarter growth. Management expressed optimism about demand improving from Q2 onward, citing a ‘pent-up technology backlog.’

    What Brokerages Are Saying: Mostly Buy, Some Caution

    Most brokerages maintained a constructive stance, though target prices vary widely. Nuvama retained a ‘Buy’ rating with a steep target of ₹3,000, while Centrum Broking kept ‘Buy’ at ₹3,480, citing record deal wins and accelerating enterprise AI adoption. Motilal Oswal reiterated ‘Buy’ with a more conservative target of ₹2,350 (15% upside), noting that while commentary was better than expected, hard evidence of demand recovery remains limited.

    Goldman Sachs maintained ‘Buy’ at ₹2,370, while Morgan Stanley took a neutral ‘Equal Weight’ stance at ₹2,200. Not all analysts are convinced: Antique stuck with ‘Hold’ at ₹2,385, and 360 One Capital also maintained ‘Hold’ at ₹2,290, arguing the quarter largely met modest expectations.

    The Risks Still Weighing on the Stock

    While the rebound has eased some fears, several headwinds persist. These include rising wage costs, increased investments in AI infrastructure, and ongoing pricing pressures that could compress future profit margins. AI-induced deflation and continued geopolitical uncertainties—such as the West Asia crisis—may further delay a broader recovery in discretionary tech spending. Moreover, the quarter’s growth was largely driven by India and the APAC region, while performance in developed markets remained subdued.

    The Bottom Line for Investors

    With target prices ranging from ₹2,200 on the cautious end to ₹3,480 on the bullish end, the broker split reflects genuine uncertainty about how quickly demand recovery translates into sustained revenue growth. Existing holders may find the setup supportive given steady deal wins and improving AI monetization. Those considering a new entry might weigh the more conservative ‘Hold’ calls against the bulls, given how much depends on Q2 demand materializing as management has guided.

  • ABB Innovation Center Unites Over 1,000 Global Innovators to Accelerate Industrial AI

    ABB Innovation Center Unites Over 1,000 Global Innovators to Accelerate Industrial AI

    ABB’s Innovation Center (AIC) in Bengaluru recently concluded the sixth edition of its ABB Accelerator program, a five-day event that brought together more than 1,000 innovators from 37 countries. The program aimed to harness frontier technologies and domain expertise to create real-world industrial AI solutions.

    The event featured over 25 distinguished thought leaders from industry and academia, 80 startups, and participation from more than 350 universities. This collaborative effort showcased how diverse expertise can accelerate product development and build a future-ready talent pipeline for industrial transformation.

    “ABB Accelerator is a global innovation program where ideas are transformed into impactful solutions for our customers. By combining cutting-edge R&D, domain and application engineering strength, digital and AI capabilities, we are helping customers unlock greater value while building capabilities that shape the future,” said GNV Subba Rao, Whole-time Director, ABB Innovation Center.

    Rajesh Ramachandran, Global Chief Digital Officer for Automation at ABB, added: “At ABB, we see the Accelerator as a powerful platform where innovation meets industrial impact. By bringing together ABB experts, partners, startups, academia and thought leaders, we are accelerating the development of scalable solutions that harness industrial AI to shape more autonomous, efficient, and sustainable operations.”

    Over the past two years, the ABB Accelerator program has engaged more than 2,000 participants and generated nearly 700 approved use cases across AI, automation, cloud, and digital technologies. The program has also earned global recognition, receiving three prestigious international awards in 5, including Gold and Bronze Stevie® Awards and the International Innovation Award.

    The ABB Innovation Center (AIC) is one of ABB’s largest global technology and engineering hubs, employing nearly 4,000 technologists in R&D, engineering, digital technologies, and global operations. It focuses on developing next-generation industrial technologies and supporting customers toward increasingly autonomous operations.

    About ABB: ABB is a global technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. With over 140 years of history and around 110,000 employees worldwide, ABB’s shares are listed on the SIX Swiss Exchange and Nasdaq Stockholm. More at www.abb.com.