TCS Q4 results: India’s largest IT services company, Tata Consultancy Services (TCS), announced its January to March quarter (Q4) results for the financial year ending 2025-26 on Thursday, April 9, 2026.
The Tata Group’s IT services arm recorded a 12% growth in its net profits and a nearly 10% rise in its revenue from core operations, beating market expectations of a flat quarter amid the geopolitical and economic headwinds due to the West Asia crisis.
Looking forward, the company management expects to record sustained customer conviction in the technology investments, which have already helped TCS in boosting its revenues amid a higher US dollar rate in the market.
“While the macro-economic headwinds continue, we see sustained customer conviction in technology investments, which positions us well for the opportunities ahead,” said K Krithivasan, Chief Executive Officer and Managing Director of TCS.
Key takeaways for investors
Net profit jumps 12%
Tata Consultancy Services (TCS) recorded a 12% rise in its consolidated net profits to ₹13,784 crore in the January to March quarter of the financial year ended 2025-26, compared year-on-year (YoY) with ₹12,293 crore in the same period a year ago, as per the NSE filing.
On a quarter-on-quarter (QoQ) basis, TCS’s consolidated net profits rose 28.5% in the fourth quarter, compared to its ₹10,720 crore level at the end of the third quarter of the fiscal year.
The IT giant’s revenue from core operations beat the market expectations, surging 9.6% to ₹70,698 crore in the fourth quarter, compared to ₹64,479 crore in the same quarter of the previous financial year.
The financial results showed that TCS’s net margins surged 80 basis points YoY to 19.8%, hitting a four-year high as of the end of the fourth quarter of FY2025-26, with strong total contract value (TCV) performance of $12 billion in a single quarter.
According to the company’s release, TCS’s annual revenue from artificial intelligence (AI) crossed $2.3 billion in the fourth quarter of the fiscal year ended 2025-26.
TCS final dividend issue
Along with its fourth quarter results, TCS also announced a final dividend issue of ₹31 per share for its shareholders, according to the exchange filing.
“We would like to inform you that at the board meeting held today, the directors have recommended a final dividend of ₹31 per Equity Share of ₹1 each of the company, which shall be paid on the third day from the conclusion of the 31st Annual General Meeting, subject to approval of the shareholders of the company,” said TCS in its NSE filing.
This means that every eligible shareholder will receive a dividend payment of ₹31 per share for every share they own in the IT giant’s stock till 24 hours ahead of the company’s fixed record date as per the eligibility criteria.
Segmental performance
TCS’s revenues from the BFSI (Banking, Financial Services and Insurance) clients continued to remain its highest yielding segment, which recorded a 11% rise to ₹27,021 crore in the fourth quarter, compared to ₹24,257 crore in the same period a year ago.
TCS’s BFSI segment revenues were followed by other portions of its business from the Consumer Business. TCS’s Consumer Business segment recorded an 11.8% rise to ₹11,345 crore, compared YoY with ₹10,146 crore in the same quarter of the previous fiscal year.
However, the Communication, Media, and Technology revenues witnessed a 6% fall to ₹10,334 crore in the January to March quarter, compared to ₹11,022 crore in the same quarter of the previous financial year.
Other segments like Manufacturing, Life sciences and healthcare, were among others which witnessed a healthy rise in revenues for the period.
Deal wins
TCS completed its fourth quarter for the year ended 2025-26 with major order wins and a strong total contract value (TCV) performance of $40.7 billion for the financial year 2025, out of which $12 billion was in the fourth quarter alone.
The company disclosed that it has added two clients over $100 million, nine clients of over $50 million, and 65 clients with over $1 million in revenue bands, in turn increasing TCS’s total client number to 1,602 clients, as of the end of the financial year 2025-26.
TCS’s strategic collaboration with global giant AMD to co-develop industry-specific AI and GenAI solutions, the IT company’s collaboration with OpenAI to build 100 megawatt (MW) data centres, which can later be expanded to 1 gigawatt (GW).
TCS’s MoU with ABB to strengthen collaborations in IT infrastructure and applications, digital and industrial AI initiatives, data centres, and other emerging technologies. A multi-year partnership with ServiceNow for AI-powered solutions, the launch of the seventh Gemini Experience Centre in the United States and the company’s collaboration with Nvidia have been the major deals for the financial year 2025-26.
Salary hike to headcount
Tata Consultancy Services’ headcount for the financial year ending 2025-26 stood at 584,519 crore, according to the official filing.
The NSE filings also showed that TCS’s employee costs for the fourth quarter rose by 9.1% to ₹40,143 crore, compared year-on-year (YoY) with ₹36,762 crore in the same quarter of the previous fiscal year.
TCS also increase the annual salary of all its employees across the grades, effective from April 1, 2026, as the IT major focuses on hiring experienced talent as well as freshers.
“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,” said Sudeep Kunnumal, Chief HR Officer of TCS.
TCS released its quarterly earnings after the market operating hours on April 9, hence the shares of the IT giant will be in focus on the investors on Friday, April 10. Tata Consultancy Services shares closed 1.2% higher at ₹2,590 after Friday’s market session, compared to ₹2,559.20 at the previous market close, according to NSE data.