Tata Consultancy Services Ltd. reported strong deal momentum in its fiscal third quarter ended Dec. 31, 2023. Revenue rose 1.7% in constant currency to $7.28 billion. However, revenue fell in North America, which represents more than 50% of total revenue.

CEO and Managing Director K. Krithivasan characterized the company’s performance as strong and said it took place in a seasonally weak quarter with macroeconomic headwinds.

“We are seeing strong deal momentum across markets resulting in a solid order book providing visibility into our long-term growth,” Krithivasan said in a press release. “We are seeing tremendous interest in generative AI and are leading the innovation and exploratory efforts for our customers in this area.”

However, revenue fell 3.0% on a year-over-year, constant currency basis in North America, TCS’ largest geography served.

In the UK, the company’s second-largest market, revenue rose 8.1%. The UK represents 16.4% of TCS’ total revenue. Revenue also rose 0.5% in continental Europe, which represent 15.0% of total revenue.

TCS had 603,305 employees in the third quarter, down from 613,974 in the year-ago quarter, a decrease of 10,669.

Net income edged up 0.8% in the third quarter. TCS said revenue would have risen 7.0% excluding a legal settlement. The company had a one-time charge of $125 million in the quarter to settle a legal claim. It stems from a judgment against the company in a lawsuit by Epic Systems Corp., a Verona, Wisconsin-based provider of electronic medical records.

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Share price

Shares in TCS closed up 0.61% today in India to 3,735.55 Indian rupees (US$44.97). Shares were 4.92% below their 52-week high.