US suspends Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe from PERM; TCS expects no material impact

The US suspended Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe from the Permanent Labour Certification Programme on Thursday, US Labour Secretary Keith Sonderling said. Tata Consultancy Services said the suspension would not have any material impact on its workforce strategy or client engagements. The announcement came as TCS reported its quarterly results on October 9.

TCS reported ₹13,884 crore profit and faster AI-related revenue growth

In its quarterly results announced on October 9, Tata Consultancy Services reported that net profit had increased 15% to ₹13,884 crore. The company also reported an acceleration in AI-related revenue and growth in its international business.

US suspends eight IT firms from the Permanent Labour Certification Programme

Keith Sonderling said the suspended firms were Cognizant, Infosys, Tata, Wipro, HCL, Capgemini, Microsoft and Adobe. Vice President JD Vance and the head of the US Anti-Fraud Task Force were present when the US Labour Secretary made the announcement.

TCS shares rose on BSE and NSE during October 9 trading

BSE data showed TCS shares reached ₹2,181.30 after rising 5.11% during trading on October 9. The company's market valuation increased by ₹36,452.23 crore to ₹7,88,670.72 crore during the session.

NSE data showed the shares rose 5% to ₹2,180 during the same trading session. Nifty data showed the Nifty IT index rose 3% on October 9, when investors focused on TCS's quarterly results.

Current H-1B visas remain in place as Indian IT firms expand local hiring

SBI Securities said the suspension related to applications for permanent residence and did not cancel current H-1B visas. It said Indian IT companies had reduced their dependence on the H-1B route and expanded local hiring after the visa fee hike earlier in the year.

Tata Consultancy Services said it did not expect the suspension to have any material impact on its workforce strategy or client engagements.

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