TCS Q1 results: How AI and data played crucial role in first quarter of FY26

Its revenue from operations advanced 1.3% to ₹63,437 crore as against ₹62,613 crore in the year-ago period.

The IT firm’s rise in profit and revenue came on the back of better performance in the data and artificial intelligence (AI) space. The growth for the quarter was led by AI & Data, TCS Interactive, and Cyber Security.

“This quarter, businesses focused on operational excellence and innovation, harnessing data and AI for better performance,” the company has said in a statement.

"Demand was led by AI-led transformation, SDLC/IT-Ops automation, and data-platform modernisation. Our investments in WisdomNext™, TCS’ flagship AI platform, are expanding with the addition of agentic AI capabilities,” TCS further said.

The company added a total of $9.4 billion in total contract value (TCV) during the reporting quarter.

Some of the key collaborations

TCS said that demand for AI-driven marketing, analytics, and proactive digital solutions continues to rise, highlighting the company’s adaptability and leadership.

“This quarter, the AI and Data unit delivered robust growth, with enterprises advancing from pilots to scaled GenAI deployments. Demand was led by AI-led transformation, SDLC/IT-Ops automation, and data-platform modernisation,” TCS said in the statement.

The firm’s TwinX AI-powered marketing campaign solution successfully increased foot traffic by five times and revenue by two times for a global automobile company.

During the quarter, a leading consumer electronics retailer partnered with TCS to drive its strategic vision of GenAI enablement at scale for reimagining business processes to be leaner and increasingly autonomous.

The company partnered with IBM to advance quantum algorithm and application development by playing a critical role in the Quantum Valley Tech Park in India. TCS will utilise the IBM system internally to conduct applied research and innovation across various sectors, including life sciences, materials science, cryptography, energy optimisation, supply chain resilience, and sustainable manufacturing.

In Q1 FY26, TCS also partnered with a large Canadian bank for enterprise data transformation and management. The multiyear deal encompasses legacy modernisation of the data estate (Hadoop decommissioning) to AWS Cloud along with broader finance transformation.

TCS has also collaborated with Vianai Systems, a leading provider of enterprise-grade, domain-specific generative AI applications, to empower business leaders with cutting-edge GenAI tools for decision intelligence. Through this collaboration, TCS customers will gain access to Vianai’s hila platform—a next-gen solution that enables C-suite executives to ask questions and gain real-time insights from their data repository, the firm said.

The IT firm also expanded its strategic partnership with a leading global insurer to help the latter modernise their core life insurance systems with the power of AI.

Management's view on AI adoption

“Across industries, clients are increasingly shifting their focus from a use-case-based approach to ROI-led scaling of AI. We are investing across the AI ecosystem, including infrastructure, data platform solutions, AI agents, and business applications. Launching TCS SovereignSecure™ Cloud, TCS DigiBOLTTM, and TCS Cyber Defence Suite to accelerate India’s AI-led transformation was a particular highlight of this quarter,” said Aarthi Subramanian, Executive Director - President and Chief Operating Officer.

The IT services firm also said that its strategic partnerships expanded, and the AI workforce with higher-order skills exceeded 114,000, strengthening TCS’s leadership position in enterprise AI solutions.