TCS Announces Q4 Results: Reports Sequential Growth, Strong Deal Wins, Margin Expansion; AI Revenue Crosses $2.3 Billion

TCS Reports Sequential Growth in Q4FY26

In Q4 FY26, Tata Consultancy Services saw a positive sequential trend, fueled by robust sales momentum and margin improvement, despite the ongoing challenges from the currency front.

The company's Q4 FY26 revenue grew 5.4% sequentially to ₹70,698 crore, or 1.2% on a constant currency basis. For FY26, the company posted a revenue growth of 4.6% year-over-year to ₹2,67,021 crore, or a decline of 2.4% in constant currency.

The company has shown good cash flow generation in Q4 FY26, with operating cash flow standing at 106.7% of net income.

Margins Expand to Four-Year High

There were positive gains in TCS’ profitability in FY26, where its operating margin increased by 70 basis points from the previous year to reach 25%, representing its highest level since four years. For the year, net margin also improved by 80 basis points to 19.8%.

During Q4FY26, its operating margin was 25.3%, which saw an increase of 10 basis points compared to the previous quarter, while net margin was 19.4%.

Deal Wins and AI Momentum

In terms of financial performance, the organisation experienced significant contract wins, with an overall TCV amounting to USD 40.7 billion in FY26 and USD 12 billion in Q4 itself, which is one of the best figures observed. This was supplemented by three mega deals in Q4 and five mega deals in FY26.

Moreover, TCS has also seen tremendous success in emerging technologies, specifically in artificial intelligence. The annualised AI revenues touched USD 2.3 billion in Q4 as a result of increased adoption of AI-based solutions in enterprises.

Dividend Announcement 

For FY26, TCS has announced its final dividend at ₹31 per share, which is conditional on the approval of the shareholders during their upcoming annual general meeting. In light of this, the overall distribution to the shareholders has amounted to ₹39,571 crore.

Strategic Partnerships Strengthen Positioning

As part of this quarter, TCS has been able to strengthen its strategic positioning by partnering with some of the best-in-class technology firms around the globe, such as OpenAI, AMD, NVIDIA, Cisco, and Google Cloud.

Client Metrics Show Broad-Based Expansion

The year FY26 saw consistent growth in TCS's customer base. The number of customers generating revenues of more than USD 100 million stood at 66, and those of USD 50 million and above were at 139.

Furthermore, there was considerable growth in the company’s small customer base, which consisted of more than 1,397 customers with revenues of USD 1 million and above.

About TCS

Tata Consultancy Services Ltd., which is a member of the Tata group, is one of the world's leading players in IT services and consulting solutions. Founded in 1968, the organisation operates in 55 countries and boasts a strong global delivery model.

The firm provides an array of services that include digital transformation, cloud computing, AI, and enterprise-level IT solutions, among others.