TCS is going to announce its second-quarter results for FY26 today. TCS’ this quarter earnings is among the most anticipated. The street is keenly awaiting clarity on the company’s workforce restructuring plans and the overall new deal environment. The US tariffs and the hike in H-1B visa fees are among the primary global headwinds that the tech industry has been facing lately.
“Tata Consultancy Services Limited will announce its results for the Second Quarter of FY 2026, ended September 30, 2025, on Thursday, October 9, 2025, after-market trading hours,” the company said in its regulatory filing.
Here are 5 key factors investors will be watching out for:
1. TCS workforce restructuring: Investors await clarification
The focus is on TCS, as it has recently announced plans to lay off 2% of its workforce, which is about 12,000 employees. The announcement on total headcount and attrition rate will be crucial, along with the costs associated with the layoffs.
2. H-1B Visa fee hike
TCS is the second-largest firm after Amazon in terms of reliance on H-1B visas, according to data from the US Citizenship and Immigration Services (USCIS). Analysts say tighter H-1B norms will likely push companies to either increase their dependence on subcontractors or step up local hiring. Although TCS has significantly reduced its reliance on H-1B visas — from 9,166 in 2015 to 5,505 in 2025—investors will be watching for the company’s plans to further de-risk its operations.
Recently, US lawmakers, including the Judiciary Committee’s leadership, sent a letter to Tata Consultancy Services (TCS), raising questions about how the company is handling H-1B visa hiring while simultaneously conducting layoffs, including in the US.
3. Focus on mega deal wins
Kotak estimates the total contract value (TCV) of over $10 billion for TCS this quarter, supported by a mega deal announced during the period. In its first quarter, the company reports a total contract value of $9.4 billion.
4. Analyst expect TCS to report a modest quarter
Kotak Institutional Equities expects TCS to report moderate revenue growth of 0.2% quarter-on-quarter (QoQ). “Ramp-downs in a few accounts and share losses could lead to moderate growth,” the report noted.
The brokerage forecast stable EBIT margins, as the impact of the wage revision effective September 1 is likely to be offset by rupee depreciation. However, it added that profit and loss (P&L) charges related to employee separation are not factored into its estimates.
5. Rupee depreciation and tariff pressure
The broader IT sector has been under pressure in recent months due to the US tariff measures, the H-1B visa fee hike, and the HIRE Act. TCS shares have fallen nearly 7.9% over the past six months. Investors will be watching closely for any impact of the tariffs on demand or the company’s clients.
The TCS earnings this quarter coincide with the first death anniversary of Ratan Tata, who passed away on this day last year. A visionary and champion of industrialisation in India, he was the Chairman of the Tata Group when TCS was listed