Noida, Apr 9 (APAC Media): IT Major Tata Consultancy Services (TCS) on Thursday reported a strong set of fourth-quarter earnings, with consolidated net profit rising 12% year-on-year (YoY) to Rs 13,718 crore.
The company announced a final dividend of Rs 31 per share, subject to approval at its Annual General Meeting. For the full year FY26, TCS delivered a total shareholder payout of Rs 39,571 crore through dividends.
In Q4FY26, TCS reported revenue of Rs 70,698 crore, registering a growth of 5.4% quarter-on-quarter (QoQ). In constant currency (CC) terms, revenue grew by 1.2% QoQ, reflecting stable underlying demand despite currency volatility.
The company’s net profit surged sharply by 29% QoQ to Rs 13,718 crore, beating expectations and highlighting improved operational efficiency.
“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,” K. Krithivasan, CEO of TCS, said.
IT major (TCS) reported total revenue of Rs 267,021 crore for the full financial year FY26, registering a 4.6% year-on-year (YoY) increase. However, in constant currency terms, revenue declined by 2.4%, reflecting continued softness in global demand and the impact of currency headwinds.
“It is equally encouraging that this momentum was broad-based across major markets and most industries. While the macroeconomic headwinds continue, we see sustained customer conviction in technology investments, which positions us well for the opportunities ahead.” K. Krithivasan added.
The company reported an operating margin of 25% for FY26, expanding by 70 basis points year-on-year (YoY) and marking its highest level in the past four years. Net margin also strengthened to 19.8%, up 80 basis points YoY, reaching a similar four-year high.
The company reported a total contract value (TCV) of $12 billion for Q4FY26, contributing to a record annual TCV of $40.7 billion for FY26. This performance ranks among the highest in the company’s history.
The quarter included three mega deals, while the full year saw five mega deals, indicating sustained client confidence and strong demand for large-scale transformation programs.
TCS maintained its position as one of the largest employers in the IT sector, with a total headcount of 584,519 employees. During FY26, employees completed 69 million learning hours, representing a 23% increase year-on-year.
Additionally, 5.2 million competencies were acquired across the workforce. Notably, more than 270,000 employees gained higher proficiency in AI and machine learning (AI/ML), aligning with TCS’s strategic focus on emerging technologies.
TCS’s Q4FY26 results highlight its ability to navigate a challenging global environment while maintaining growth and improving margins. Strong deal wins, expanding AI capabilities, and continued investment in talent position the company well for future growth.
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