Tata Consultancy Services (TCS) is going to announce its Q2FY26 on October 9. Analyst expects the IT firm to post a stable second quarter (Q2FY26) after a weak start to the year. According to estimates by Nuvama Institutional Equities, However, given all the layoff buzz, the focus is on company’s announcements on workforce restructuring, policies for those on bench and the deal wins.
1. TCS Q2 preview: Workforce restructuring
Analysts and investors will be watching out for any announcement on any cut in workforce and employee restructuring plans by the company. The IT major was recently in the news since the Q1 earnings announcements on its plans of reducing 2% of its workforce, as part of its initiative to realign skills within the organisation.
However, IT employees’ body NITES said in a letter to the Maharashtra Chief Minister on Wednesday that TCS has allegedly forced around 2,500 employees to resign in Pune. In the previous quarter, Q1FY26, the company’s total headcount increased by 6,071.
2. TCS continues strong deal momentum
Despite macro headwinds, TCS has continued to bag large deals across geographies and verticals. In recent months, the company has signed contracts with Weatherford International for AI-driven transformation, Now Corporation in the Philippines to build a sovereign data cloud, and Kesko in Finland for retail digitisation.
It also clinched a 550 million euro deal with European insurer Tryg for a seven-year digital transformation programme. In India, TCS has partnered with the Odisha government to build an AI-enabled integrated financial management system. Other wins include collaborations with France’s CEA, The Warehouse Group in New Zealand, ARN Media in Australia and Vodafone Idea.
3. TCS India business to see flat revenue gwoth: Nuvama
Nuvama expects the company’s India business to remain flat as the ramp down of the BSNL deal is complete. Under this Rs 15,000-crore agreement, TCS, in collaboration with the government’s Centre for Development of Telematics (C-DOT), is deploying BSNL’s 4G network across the country. The project involves setting up large data centres in four regions of India and 38 deployments of varying capacities at BSNL premises across all telecom circles, making TCS the first indigenous network solutions provider at this scale.
More recently, on September 18, TCS signed a five-year agreement with Vodafone Idea to modernise its business support systems. As part of this deal, TCS will roll out its flagship HOBS™ and TwinX™ platforms to deliver AI-driven customer experiences, accelerate product launches, and strengthen operational agility.
4. TCS Q2FY26 preview: Outlook for business from US
Analysts will also keep a close watch on management commentary around the outlook for the US market, given the current tariff-related uncertainty and regulatory changes.
5. TCS shares under pressure
The broader IT sector has been under pressure in recent months, with TCS shares falling nearly 15.34% in last three months. The company’s stock has dropped around 18.25% over six months and 29.56 per cent so far this year, though it remains positive for the calendar year.