TCS Q4 results 2026: Tata Consultancy Services (TCS) on Thursday, April 9, reported a 12.2% year-on-year (YoY) rise in consolidated profit for the January-March quarter of the previous financial year (Q4FY26) at ₹13,718 crore. In the same quarter last year, the company’s profit was ₹12,224 crore, according to its exchange filing.
Consolidated revenue from operations for the quarter under review rose 9.6% YoY to ₹70,698 crore from ₹64,479 crore in Q4FY25.
Sequentially, or quarter-on-quarter (QoQ), the company’s profit jumped 28.7%, while revenue from operations rose by 5.4%.
“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,” said K Krithivasan, Chief Executive Officer and Managing Director, TCS.
“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,” Krithivasan said.
TCS Q4 results: Five key highlights
1. The key numbers
According to the company’s exchange filing, its revenue in the quarter increased by 1.2% QoQ in constant currency (CC).
Operating income decreased by 7.6% QoQ to ₹15,601 crore, while operating margin for the quarter inched up by 10 basis points QoQ to 25.3%, excluding one-offs.
For the complete year FY26, TCS’s profit inched up by 1.4% to ₹49,210 crore from ₹48,553 crore in FY25. Revenue grew 4.6% YoY, but declined 2.4% in CC to ₹2,67,021 crore. Excluding one-offs, the operating margin in FY26 stood at 25%, up 70 basis points YoY. This was the highest operating margin in the last four years.
“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 rigour. Our solid cash flow and resilient balance sheet position us to advance strategic priorities, pursue timely investments, and maximise growth,” said Samir Seksaria, Chief Financial Officer, TCS.
2. Growth in key domains and markets
‘Energy, resources and utilities’ led the growth among key business domains during the March quarter. The segment saw 6.1 % QoQ and 7.3% YoY growth in CC.
Consumer business also saw a decent growth of 2.8% QoQ and 0.8% YoY. The technology and services domain rose by 1% QoQ and 2.5% YoY.
The BFSI segment saw a nominal growth of 0.1% QoQ and 0.4% YoY.
Among the markets, North America saw a 1.4% QoQ and 2.5% YoY growth. Revenue from the Latin American market shrank by 6.9% QoQ and 2.9% YoY.
In Europe, the UK saw a growth of 2.4% QoQ, but on a YoY basis it declined by 1.2% in CC.
The Indian market grew by 1.7% QoQ but degrew by 23% YoY.
3. Deal TCV and client addition
TCS reported strong deal wins for the quarter and full financial year.
Its deal TCV (total contract value) stood at $40.7 billion for FY26 and at $12 billion for Q4FY26, which, as per the company, was among the highest TCVs ever. It secured 3 mega deals during the quarter and 5 mega deals during the year.
Here are some key deal wins secured by TCS during Q4FY26:
(i) A strategic collaboration with AMD on the co-development of industry-specific AI and GenAI solutions.
(ii) A multi-dimensional strategic partnership with OpenAI that spans multiple high-impact areas, including powering AI-led innovation across Tata Group companies, joint efforts to drive AI transformation across industries globally, and setting up AI infrastructure as well as social impact.
(iii) A strategic partnership with Honeywell to help building operators move from traditional automation to enterprise-wide autonomy.
(iv) A multi-year partnership with ServiceNow for developing trusted, AI-powered solutions on the ServiceNow platform.
(v) Entered into a strategic alliance with Cisco to launch a Centre of Excellence (CoE) in Hyderabad for Autonomous Enterprise Operation.
Moreover, TCS saw healthy client addition across revenue bands:
The number of clients generating over $100 million in revenue increased by two year-on-year, taking the total to 66.
Similarly, the number of clients with revenues exceeding $50 million rose by nine compared to the previous year, reaching 139.
At the lower end, the $1 million-plus client segment saw the sharpest growth, with an increase of 65 year-on-year, bringing the total number of such clients to 1,397.
4. Headcount
Employee by the end of Q4FY26 stood at 5,84,519 compared to 5,82,163 by the end of Q3FY26.
The company also announced the implementation of annual salary increases across all grades from 1st April.
“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, TCS.
5. Dividend
TCS announced a final of ₹31 per share for FY26.
“The Board of Directors, at its meeting held today, has recommended a final dividend of ₹31 per equity share of ₹1 each of the company. The dividend shall be paid on the third day from the conclusion of the 31st Annual General Meeting, subject to shareholders’ approval,” TCS said in its regulatory filing.