TCS Q1 Earnings, Results: With IT major Tata Consultancy Services (TCS) has announced its quarter numbers. The Q1 profit is up 6% YoY, higher than estimates, at Rs 12,760 crore. The company has announced that its Q1 revenue came in at Rs 63,437 crore, down 3.1% YoY.
The operating margin came in at 24.5%, while the net margin was at 20.1%, up 90 bps YoY. The Q1 Total Contract Value (TCV): $9.4 billion.
K Krithivasan, Chief Executive Officer and Managing Director, said “The continued global macro-economic and geo-political uncertainties caused a demand contraction. On the positive side, all the new services grew well. We saw robust deal closures during this quarter. We remain closely connected to our customers to help them navigate the challenges impacting their business, through cost optimization, vendor consolidation and AI-led business transformation”.
The TCS board has announced an interim dividend of Rs 11 per share. The interim dividend shall be paid on Monday, August 4. The record date has been set at July 16.
TCS Q1 Results: From hiring, wage hike, deal wins to dividend, demand trends – Everything you need to know
TCS Q1 Results Live Updates: ‘International market growth in FY26 will be better than FY25’
During the media interaction post Q1 results announcement, TCS management said that BSNL ramp down impacted the company revenue by 2.8 per cent and international markets, meanwhile, declined by 0.5 per cent. However, they maintained that the international market growth in FY26 will be better than FY25.
During the post-results presser, TCS management said that the attrition rate at 13.8 per cent is a little more than the comfort zone of 13 per cent. Further, on the hiring plans, the leadership team said that TCS will calibrate hiring based on the demand environment.
They also maintained that the IT firm is not making any decision on wage hike as yet. Further, CHRO Milind Lakkad said, “If the macroeconomic environment improves, and as a result of business improves, we will definitely give the best possible hikes we normally give.”
TCS Q1 Results Live Updates: CHRO assures of no reduction in headcount due to AI
During the post-results presser, while maintaining that the company will not reduce headcount due to artificial intelligence (AI), Milind Lakkad, Chief HR Officer, TCS, said, “We expect to hire as we had planned. The kind of jobs they will do is different.”
TCS Q1 Results Live Updates: Focus on IoT & Digital Engineering
The IoT & Digital Engineering unit experienced a rise in client investments focused on plant transformation and connected IoT platforms. TCS said that industry segments such as Utilities, Energy, and Life Sciences witnessed heightened activity. Service lines like smart manufacturing and digital thread services continued their positive momentum in line with ongoing trends. “We have seen strong traction across LATAM and Europe during the period,” it said.
TCS Q1 Results Live Updates: Focus on Enterprise Solutions
This quarter, the Technology Services, Manufacturing, and Healthcare sectors were the primary drivers of growth. For a global pharmaceutical firm, the IT firm effectively designed and streamlined end-to-end processes using SAP S/4HANA, establishing a robust and scalable operational backbone worldwide. “Our collaboration with Vianai also gained strong momentum across various industries during the quarter,” it said.
TCS Q1 Results Live Updates: Focus on cyber security
This quarter, TCS said, the focus of customers has been on Identity and Access Management, Managed Detection & Response (MDR) and Governance, Risk & Compliance Services. “We are also seeing traction for Enterprise Attack Surface Management, Cloud Security, Data Security and Network Security. Focus on GenAI observed across various customers,” it said.
TCS Q1 Results Live Updates: Focus on Cloud
“We continued to see traction in Cloud Contact Centre transformation, legacy modernization to cloud, and Cognitive Enterprise Network Services,” TCS said while maintaining that the IT major further strengthened its strategic partnership with Microsoft to develop new AI and cloud solutions that will help clients drive future business transformation and growth.
TCS Q1 Results Live Updates: Deal wins touch $9.4 billion
TCS opened the financial year on a positive note, posting a nearly 6 per cent rise in its net profit for the June quarter of FY26. The company reported a Total Contract Value (TCV) of $9.4 billion in Q1FY26.
READ MORE: TCS Q1FY26: Deal wins touch $9.4 billion, announces big investment in AI
TCS Q1 Results Live Updates: Focus on AI and data
This quarter, TCS said, the AI and Data unit delivered robust growth, with enterprises advancing from pilots to scaled GenAI deployments. “Demand was led by AI-led transformation, SDLC/IT-Ops automation, and data-platform modernization. Our investments in WisdomNext™, TCS’ flagship AI platform are expanding with the addition of agentic AI capabilities,” it added.
The IT major further added that its AI workforce with higher order skills exceeded 114,000, strengthening its leadership position in enterprise AI solutions.
TCS Q1 Results Live Updates: Samir Seksaria on Q1 performance
Samir Seksaria, Chief Financial Officer, TCS, said, "We continued our investments in long term sustainable growth this quarter. We stayed agile and adapted to the dynamic environment, delivering steady margins. Our industry leading profitability alongside robust cash conversion, positions us well to make strategic investments for the future.”
TCS Q1 Results Live Updates: Key highlights
• Revenue at Rs 63,437 crore, +1.3% YoY, Decline of 3.1% YoY in Constant Currency
• Operating Margin at 24.5%; an expansion of 30 bps QoQ
• Net Income at Rs 12,760 crore, +6.0% YoY | Net Margin at 20.1%
• Net Cash from Operations at Rs 12,804 crore
• Workforce strength: 613,069 | Net Headcount addition of 6,071 YoY
• LTM IT Services attrition rate at 13.8%
• Dividend per share: Rs 11
TCS Q1 Results Live Updates: ‘Accelerating India’s AI led transformation was a particular highlight of this quarter’
Aarthi Subramanian, Executive Director - President and Chief Operating Officer, TCS, said, “Across industries, clients are increasingly shifting their focus from use case based approach to ROI led scaling of AI. We are investing across the AI ecosystem including infrastructure, data platform solutions, AI agents and business applications. Launching TCS SovereignSecureTM Cloud, TCS DigiBOLTTM, and TCS Cyber Defense Suite, to accelerate India’s AI led transformation was a particular highlight of this quarter.”
TCS Q1 Results Live Updates: TCS now has 114,000 people with higher order AI skills, says Milind Lakkad
Milind Lakkad, Chief HR Officer, TCS, said “Talent Development is core to TCS. In this quarter, our associates invested 15 million hours in building expertise in emerging technologies, enabling them to lead the transformation journey for our customers. It is gratifying to note that TCS now has 114,000 people with higher order AI skills”.
TCS’ workforce stood at 613,069 as on June 30, 2025. The company said that its associates invested 15 million hours and acquired 1.3 million competencies in emerging technologies, enabling them to lead the transformation journey for its customers. IT services’ attrition stood at 13.8 per cent for the last twelve months.
READ MORE: TCS Q1FY26: Attrition rate 13.8%, employee count increases by 6,071
TCS Q1 Results Live Updates: Update on research and innovation
As on June 30, 2025, the company applied for 8,987 patents, including 171 applied during the quarter, and has been granted 4,939 patents including 119 granted during the quarter.
TCS Q1 Results Live Updates: Saw robust deal closures during this quarter, says K Krithivasan
K Krithivasan, Chief Executive Officer and Managing Director, TCS, said, “The continued global macro-economic and geo-political uncertainties caused a demand contraction. On the positive side, all the new services grew well. We saw robust deal closures during this quarter. We remain closely connected to our customers to help them navigate the challenges impacting their business, through cost optimization, vendor consolidation and AI-led business transformation.”
Tata Consultancy Services (TCS) announced a dividend of Rs 11 per equity share of Re 1 each of the company. The company announced the date for the payment of the dividend as August 4, 2025.
In a regulatory filing, the company said, “We would like to inform you that at the Board Meeting held today, the Directors have declared an interim dividend of INR 11 per Equity Share of INR 1 each of the Company.”
READ MORE: TCS announces dividend of Rs 11 per equity share – All details here
TCS released its fiscal first quarter earnings report today with profit growth of 5.98 per cent on-year at Rs 12,760 crore in comparison to Rs 12,040 crore recorded during the corresponding quarter of FY25, beating estimates. It posted revenue from operations at Rs 63,437 crore, up 1.32 per cent as against Rs 62,613 crore recorded during the first quarter of previous financial year. EBIT for Q1FY26 stood at Rs 15,514 crore.
According to a CNBC TV18 poll, TCS was estimated to post Q1 profit at Rs 12,127 crore and revenue for the quarter in review was estimated at Rs 64,206 crore.
TCS Q1 Results Live Updates: Will IT sector recover in Q1FY26?
India’s fiscal Q1 earnings season is set to begin with Tata Consultancy Services (TCS) today, and analysts anticipate a mixed showing from IT services firms. Q1FY26 performance is likely to be influenced by macroeconomic uncertainty, tariff-related pressures, and early signs of a recovery in discretionary spending. While most large-cap IT players—barring Infosys and LTIMindtree—are expected to see a sequential decline in revenues, Tier-2 and select mid-cap firms are likely to outperform, supported by strong deal momentum and favorable currency movements.
READ MORE: What’s the top expectation for tech sector in Q1FY26: Winners, worries, and guidance triggers
TCS Q1 Results Live Updates: Steady margins in Q4FY25- A recap
TCS maintained a stable operating margin of 24.2 per cent in Q4 FY25, with full-year margin at 24.3 per cent and net margin at 19 per cent.
While revenue from North America and Europe declined, emerging markets grew 37.2 per cent year-on-year, and India rose 8.2 per cent.
In Q4 FY25, TCS witnessed a modest uptick in its attrition rate, rising from 13.0% in the previous quarter to 13.3% over the last twelve months.
Despite this increase in employee turnover, the company demonstrated strong hiring momentum—adding 625 net new employees in the quarter and boosting its overall workforce to 607,979.
TCS Q1 Results Live Updates: Deal wins in Q4FY25 – a recap
In Q4 FY25, TCS delivered a strong performance in deal wins.
It achieved a Total Contract Value (TCV) of $12.2 billion—a remarkable 19.6 per cent increase from the previous quarter (Q3 FY25).
This surge underscores robust demand across AI-driven services, digital transformation, cloud, and IoT, with notable momentum in regional markets, which grew 22.5 per cent year-on-year.
Key wins include large-scale AI/GenAI engagements—such as building GenAI models for a leading North American utility using LiDAR and satellite data—and several deals involving platforms like ignio™, TCS BaNCS™, Quartz™, and MasterCraft™, reinforcing TCS’s leadership in next-generation solutions.
TCS Q1 Results Live Updates: Dividend announcement in Q4FY25 – A Recap
In Q4FY25, TCS announced a dividend of Rs 30 per share, marking a 72.6 per cent increase compared to the Rs 26,426 crore paid in FY24.
TCS’s total dividend payout for FY25 stood at Rs 45,612 crore. The dividend payout for FY25 also exceeded the FY24 dividend per share (DPS) of Rs 73.
In comparison, TCS had paid a total of Rs 115 per share in FY23, which included a special dividend of Rs 67.
TCS Q1 Results Live Updates: EBIT margins expected to be flat
Kotak Institutional Equities expects TCS' EBIT margins to decline year-on-year and remain flat sequentially, as the company sees no operating leverage from growth—despite postponing its usual April wage hikes.
In developed markets, revenue growth is expected to remain weak at 0.3 per cent, with client ramp-downs contributing to underperformance compared to peers. Reported revenue is forecast at US$157 million, down US$57 million quarter-on-quarter, largely due to a decline in BSNL-related revenues.
TCS Q1 results live updates: Deal wins expected to remain stable at $8–9 billion
Kotak Institutional Equities expects TCS to report steady deal wins, flat year-on-year, in the range of $8–9 billion. It notes that investor focus will remain on why these wins are not translating into stronger growth in the international business.
TCS Q1 Results Live Updates: TCS to hire 40,000 freshers
TCS plans to onboard over 40,000 freshers in FY26, reflecting its long-term workforce strategy amid a volatile demand environment.
Emkay Global Financial Services notes that while the broader IT sector is witnessing a pause in lateral hiring, TCS remains focused on fresher hiring as a strategic move to optimise its talent pyramid and manage costs.
TCS Q1 Results Live Updates: Constant currency revenue is expected to decline by 2 per cent
Anand Rathi expects TCS to report a sequential constant currency (cc) revenue decline of around 2 per cent, largely due to the tapering of the BSNL account. This comes even as the broader IT services sector benefits from strong cross-currency tailwinds driven by the depreciation of the US dollar.
TCS Q1 Results Live Updates: TCS’ Q4FY25 performance - A Recap
On April 10, TCS had released its earnings report for the fourth quarter of FY25. It had posted profit at Rs 12,224 crore, reporting a decline of 1.69 per cent in comparison to Rs 12,434 crore recorded during the corresponding quarter of FY24. For the period under revenue, the ITmajor had posted revenue from operations at Rs 64,479 crore, up 5.29 per cent as against Rs 61,237 crore during the same period of previous financial year. The company EBIT stood at Rs 15,601 crore.
With TCS all set to release its Q1 results today, its share price is in focus. At market open today, TCS share price remained largely unchanged, slipping by 0.23 per cent. However, the stock has slumped 18% so far in 2025 as a result of the continuing concerns in the tech sector.
The US tariff have been a key overhang for the share price as worries about a potential demand slowdown take centre stage. This as a result is also one of the key commentaries that the steet will watch out for.
Read More: TCS shares slide 18% in 2025 so far: Will Q1 results spark a turnaround?
TCS Q1 Results Live Updates: Falling contribution from BSNL deal to impact revenue growth, says InCred Equities
InCred Equities said that TCS is expected to post a decline in constant currency (CC) revenue, primarily on Bharat Sanchar Nigam Ltd (BSNL), while developed markets are likely to post modest sequential growth. Margin pressures, it added, may arise from softer revenue trends, ongoing business reinvestments—such as expanding the partnership ecosystem—and quarter-on-quarter INR appreciation.
In terms of key monitorables, the brokerage firm said that areas to watch include deal pipeline conversions, trends in the financial services, retail, and manufacturing sectors, as well as the ramp-up of large deals.