Tata Consultancy Services (TCS) Q4 25/26 earnings summary

Executive summary

• Achieved third consecutive quarter of sequential growth, with Q4 FY26 revenue up 5.4% QoQ and 9.6% YoY in INR, and $7.621B in USD, despite macroeconomic and geopolitical headwinds.

• Q4 TCV reached $12 billion, including three mega deals; FY26 TCV totaled $40.7 billion; annualized AI services revenue surpassed $2.3 billion.

• FY26 revenue was ₹2,670,210 Mn (4.6% growth) and $30,017 Mn (0.5% de-growth); constant currency revenue declined 2.4%.

• Operating margin for Q4 FY26 was 25.3%, with net margin at 19.4%; FY26 operating margin reached a four-year high at 25%.

• Broad-based client additions across all revenue bands, with notable increases in $100M+ and $1M+ accounts; closing headcount at 584,519 with 35.2% women employees.

Financial highlights

• Q4 revenue: INR 70,698 crores ($7.621B), up 5.4% QoQ in INR and 1.5% in USD; constant currency growth 1.2%.

• FY26 revenue: INR 267,021 crores ($30.017B), up 4.6% YoY in INR, down 0.5% in USD; constant currency decline of 2.4%.

• Q4 operating margin: 25.3% (up 10 bps QoQ); net margin: 19.4%; EPS grew 12.2% YoY.

• FY26 operating margin: 25% (up 70 bps YoY); net margin: 19.8%; EPS up 8.8% YoY; FY26 EPS was ₹145.99.

• Net cash from operations in Q4: $1.6B (106.7% of net income); FY26 free cash flow was ₹429,830 Mn; total cash and investments at year-end were ₹500,200 Mn.

Outlook and guidance

• Entering FY27 with strong order book, positive momentum across most industry verticals, and confidence in growth.

• Management expects regular seasonality in Q1 and Q2, with positive outlook for international growth.

• Margins expected to remain within a tight range, balancing investments and operational rigor.

• Forward-looking statements highlight risks from competition, currency fluctuations, talent retention, regulatory changes, and macroeconomic conditions.

• Strategic acquisitions are expected to strengthen capabilities in Salesforce and cloud consulting.