Tata Consultancy Services (TCS) Q1 25/26 (Media) earnings summary

Executive summary

• Q1 FY2026 revenue was INR 63,437 crore, up 1.3% YoY, but declined 3.1% in constant currency; USD revenue fell 1.1% YoY.

• Operating margin improved to 24.5%, with net margin at 20.1% and net profit at INR 12,819 crore.

• Order book TCV reached $9.4 billion, up 13.2% YoY, with North America contributing $4.4 billion.

• Net employee count was 613,069, with attrition at 13.8%.

• Interim dividend of INR 11 per share declared, payable August 4, 2025.

Financial highlights

• Consolidated revenue for the quarter was INR 63,437 crore, up from INR 62,613 crore YoY but down from INR 64,479 crore sequentially.

• Net profit was INR 12,819 crore, with EPS at 35.27, up from 33.28 YoY.

• Operating profit was INR 15,514 crore, with gross margin at 39.1%.

• Cash from operations was INR 12,804 crore, representing 100.3% conversion of net profit.

• Free cash flow for the quarter was INR 114,000 Mn; total cash and investments rose to INR 487,040 Mn.

Outlook and guidance

• Management remains optimistic for FY2026 international revenue growth, but timing depends on macroeconomic clarity.

• Strong order book and pipeline provide confidence for future quarters.

• Forward-looking risks include competition, wage increases, currency fluctuations, and geopolitical instability.