TCS Q4 Results Highlights: Profit up 12.22%, net headcount increased to 2,356, announced Rs 31 Dividend

Tata Consultancy Services' total headcount at the end of the FY26 stood at 584,519. The company said that the voluntary LTM attrition rate stood at 13.7% in IT Services.

TCS's revenue from its North American market, which accounts for nearly half of its total, grew by 2.5%.

"While the macroeconomic ⁠headwinds continue, we ⁠see sustained customer conviction in technology investments, which positions us well for the opportunities ahead," ⁠chief ‌executive K Krithivasan said in a statement.

TCS has renewed its partnership with Marks & Spencer. The company said that the continuing engagement builds on the more than a decade-long trusted partnership between the two organizations and will see TCS continue to serve as M&S’s strategic technology partner as the retailer embeds its technology transformation.

"As part of this continuing partnership, TCS will support M&S as it transforms to become an omnichannel, data‑driven retailer supported by globally best-in-class modern technologies. TCS will utilise AI in its transformation approach—supported by its extensive domain expertise and one of the world’s largest AI talent pools. This will support future-readiness, provide the right base for long‑term growth, and create a superior customer experience", TCS said in a statement.

TCS employee base increases by 2,356 in the January-March quarter to take the overall headcount to 5,84,519 as on March 31, 2026.

For the full fiscal year 2025-26, TCS' overall headcount dropped by 23,460 to 5.84 lakh employees.

Sudeep Kunnumal, Chief HR Officer, said “We are pleased to implement annual salary increases across all grades effective 1st April. In Q4, we continued to invest in a future‑ready workforce with strong additions across experienced talent and campus hires. Building an AI‑first culture and equipping our people with AI‑ready skills remained a key priority in FY26 and will continue into FY27, as we align closely with our customers’ evolving needs.”

Samir Seksaria, Chief Financial Officer, said, “In FY26, we intensified investments through our Build–Partner– Acquire approach, by acquiring Coastal Cloud & List Engage and establishing HyperVault. Even as we scaled our investments in AI‑led growth opportunities, our margins expanded by 70 basis points, reflecting our strong operational rigor. Our solid cash flow and resilient balance sheet position us to advance strategic priorities, pursue timely investments, and maximize growth.”

Aarthi Subramanian, Executive Director - President and Chief Operating Officer, said "FY26 marked a pivotal year for enterprise AI adoption. In Q4, our annualized AI revenues surpassed $2.3 billion, driven by the accelerated deployment of AI solutions. We experienced strong deal momentum across new services in Enterprise Transformation, Digital Engineering, and Cloud Modernization. Our investment in HyperVault was a catalyst in forging strategic partnerships with OpenAI, AMD and ABB, further strengthening our positioning across Infrastructure-to-Intelligence.”

For the full financial year FY26, TCS reported a net profit of Rs 49,210 crore, slightly higher by 1.35% from Rs 48,797 crore reported in FY25.

Revenue for the year rose to Rs 2,67,021 crore, up 4.58% from Rs 2,55,324 crore in the previous year. Total income stood at Rs 2,71,423 crore.

Tata Consultancy Services said that its annualized AI Revenue crossed $2.3 billion in Q4 FY26. The company entered into a strategic partnership with leading players in the AI industry, on both the software and hardware front.

TCS partnered with OpenAI, AMD, NVIDIA, Google Gemini, and other industry companies.

“FY26 marked a pivotal year for enterprise AI adoption. In Q4, our annualized AI revenues surpassed $2.3 billion, driven by the accelerated deployment of AI solutions. We experienced strong deal momentum across new services in Enterprise Transformation, Digital Engineering, and Cloud Modernization.” Aarthi Subramanian, Executive Director - President and Chief Operating Officer of TCS said.

TCS reported strong deal momentum during the quarter, with total contract value (TCV) at $12 billion in Q4 and $40.7 billion for the full year. The company signed three mega deals in the quarter and five during FY26.

TCS said that it incurred restructuring expenses of Rs 1,388 crore in FY26. In the previous quarter, Q3FY26, it incurred restructuring expenses of Rs 253 crore.

Employee benefit expenses cost stood at Rs 40,143 crore in Q4FY26.

K Krithivasan, Chief Executive Officer and Managing Director, said “We are pleased to report the third consecutive quarter of sequential growth, supported by three mega deals and a $12 billion TCV, underscoring the strength of our five pillar strategy and our AI led positioning across services."

"It is equally encouraging that this momentum was broad based across major markets and most industries. While the macro-economic headwinds continue, we see sustained customer conviction in technology investments, which positions us well for the opportunities ahead.”, he added

On a sequential basis, the IT major reported a 28.72% increase in net profit from Rs 10,657 crore reported in Q3FY26. Revenue also rose 5.38% QoQ from Rs 67,087 crore.

Tata Consultancy Services' expenses rose by 8.12% YoY during the quarter. The company's consolidated expenses in Q4 FY26 stood at Rs 53,093 crore, compared to Rs 49,105 crore in Q4 FY25.

For the financial year ending March 31, 2026, the company’s board has recommended a final dividend of Rs 31 per share. As per the exchange filing, each share has a face value of Re 1. This brings the total dividend for the year to Rs 110 per share, which includes Rs 31 of final dividend and Rs 79 in interim dividends that were already paid during the year.

As per the filing, if approved by the shareholders at the 31st Annual General Meeting, the final dividend will be paid on the third day following the onclusion of the AGM.

TCS reported a headcount of 2,356 in Q4FY26 after a sharp drop that the company experienced in the previous two quarters, i.e, Q2FY26 and Q3FY26.

TCS reported a 9.6% YoY revenue growth in Q4 FY26. The company reported a consolidated revenue of 70,698 crore in the March quarter, compared to a revenue of Rs 64,479 crore in Q4 FY25.

TCS reported a net profit growth of 12.2% YoY. The company posted a consolidated net profit of Rs 13,718 crore in Q4 FY26, compared to Rs 12,224 crore in the same quarter of the previous year

The share price of TCS closed in green gaining 1.09% from the previous close. The stock has declined 19.8% so far this year.

Equirus Securities says companies are increasing spending on AI, but this is largely being funded through cost savings—such as outsourcing, vendor consolidation, and efficiency gains from AI itself. "This,

in our view, is likely to keep IT spend under check at least for the near-medium term," Equirus Securities noted.

Equirus Securities expects TCS to post an improvement in EBIT margins by around 24 basis points, supported by rupee depreciation against the US dollar and gains from cost efficiency and productivity. These factors are expected to offset pressures from wage hikes for mid- to senior-level employees and ongoing investments. Equirus also expects total contract value (TCV) of deals to remain healthy on a quarter-on-quarter basis.

Equirus Securities expects TCS to report a 1.3% sequential growth in dollar revenue in constant currency terms. On an organic basis, growth is likely to come in slightly lower at 0.9%.

The brokerage said the India business may decline on a quarter-on-quarter basis, while international markets are expected to perform better. It estimates constant currency growth of 1.7% QoQ and organic growth of 1.3% QoQ in the international segment.

Motilal Oswal sees no major disruptions to IT earnings from the ongoing war yet. “Although deal wins may be impacted in the short term,” the brokerage said. It also noted that there is no significant evidence yet of deflationary shocks from AI implementation.

“For Q4, we expect aggregate revenue for our coverage universe to grow by 11.3% YoY, while EBIT and PAT are likely to grow by 12.9% and 10.8% YoY (all in rupee terms), respectively,” Motilal Oswal said.

TCS has recently launched its seventh Gemini Experience Center at its Innovation Hub in Troy, Michigan. Established in partnership with Google Cloud, the newest TCS GEC focuses on developing cutting-edge Physical AI solutions tailored for the manufacturing sector.

The new center marks a significant step in the global expansion of TCS’ Gemini Experience Centers. By the end of 2026, TCS and Google Cloud will have a total of 13 GECs worldwide, with six additional centers set to launch this year. As AI adoption accelerates across industries, these centers will play a critical role in helping enterprises move from isolated AI pilots to scalable, production-ready transformation programs.

Kotak Institutional Equities says that it expect TCS to lead revenue growth among Tier-1 companies, while Persistent will lead the charge among mid-tier companies. It adds that the current stock prices of TCS reflect low growth expectations.

"We forecast 1.2% growth in c/c contributed by 0.8% on organic basis and 40 bps contribution from Coastal cloud acquisition," Kotak says. The brokerages expects TCS's international business to grow faster and believes that India business will decline marginally. "We expect stable EBIT margin. Headwind of wage revision and Coastal cloud acquisition will likely be offset by rupee depreciation," the brokerage says.

"We expect topline growth by 2.6% QoQ, led by growth in BFSI, Hi-tech, and cross-currency tailwinds. EBIT Margins are likely to improve by 23 bps QoQ," Axis Securities said in a report.

It adds that key moniterables include: deal pipeline, vertical commentary, and outlook on FY27.

"We reckon TCS shall deliver +1.2% QoQ CC/+1.7% USD revenue growth. Growth to be broad-based across developed markets and RoW, with BSNL extension deal yet to start. Margins are likely to remain flat QoQ led by Fx tailwinds, partly offset by reinvestments and higher variable pay provisioning," Nuvama Institutional Equities said in a report.

The brokerages says to watch out for the outlook on US macro and update on employee restructuring

BNP Paribas in its report said that while investors are avoiding strong directional bets on IT sector amid rising global uncertainty, sentiment toward India has turned more cautious, with concerns around LNG supply constraints posing a longer-term earnings risk despite crude volatility being seen as temporary.

"With an elevated uncertainty on the near-term outlook for other sectors, investors find IT Sector to be favorably positioned, helped by Rupee depreciation. In the event of a quick resolution of Middle East conflict, this trade could reverse," BNP Paribas noted.

BNP Paribas sees a lack of investor interest in TCS despite its valuation discount to Infosys. “Investors are waiting for a growth recovery in the company and are finding better value in other stocks,” BNP Paribas said.

The analyst added that interest in its data centre business has reduced considerably, especially amid a lack of growth in the core business.

Motilal Oswal expects TCS to report about 1.5% QoQ revenue growth in constant currency terms, with international business growing at a similar pace. It also sees a 0.3% contribution from the Coastal Cloud acquisition during the quarter.

The deal pipeline is expected to remain healthy, with key focus areas including demand trends, tech spending, AI data centres, BFSI performance and deal wins. Margins are likely to remain stable sequentially, supported by currency tailwinds, even as wage-related pressures ease and one-off impacts fade. Additionally, recent acquisitions like ListEngage and Coastal Cloud are expected to aid near-term growth, with synergies being a key monitorable.