TCS Q4 earnings: Net profit rises 12% to ₹13,718 crore, revenue advances 10% to ₹70,698 crore

Tata Consultancy Services (TCS), the country's largest software services company, on Thursday, April 9, reported a consolidated net profit of ₹13,718 crore in fourth quarter of previous financial year (Q4FY26), marking an increase of 12% from ₹12,224 crore in the same period in the year-ago period. On a sequential basis, TCS' net profit rose 29% from ₹10,657 crore.

TCS' revenue from operations jumped 10% annually to ₹70,698 crore at the end of March quarter from ₹64,479 crore. In constant currency terms its revenue rose 1.2% and sequentially.

The company's annualised revenue from artificial intelligence crossed $2.3 billion in the fourth quarter of FY26.

TCS recorded a strong total contract value (TCV) performance in Q4 as it signed deals worth $12 billion with three mega deals for the quarter and five mega deals for the full financial year.

For financial year 2025-26, TCS' net profit came in at ₹49,210 crore compared with ₹48,553 crore in the previous financial year. The company clocked operating margin of 25%, its highest in last four years.

“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. 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,” said K Krithivasan, Chief Executive Officer and Managing Director.

TCS Q4 deal wins

TCS entered into a strategic collaboration with AMD a leader in high-performance and AI computing, on the co-development of industry-specific AI and GenAI solutions by combining TCS’ deep domain expertise, systems integration capabilities and global innovation ecosystem with AMD’s high-performance computing and AI product portfolio.

The companies will help enterprises modernize hybrid cloud and edge environments, deploy AI-powered workplace solutions, and accelerate innovation across cloud-to-edge workloads, TCS said.

TCS also introduced Rapid Outcome AI platform built on NVIDIA to help organizations accelerate their journey from AI experimentation to scalable, real-world business outcomes. By leveraging predictive analytics, generative AI, computer vision, and agentic and Physical AI blueprints tailored for industry-specific processes, TCS and NVIDIA will help enterprises achieve higher levels of autonomy across their enterprise workflows.

The company launched seventh Gemini Experience Center (GEC) at TCS Innovation Hub in Troy, Michigan, in partnership with Google Cloud, to enable global manufacturers to co-innovate and scale AI-led solutions for smarter, resilient operations.

"FY26 marked a pivotal year for enterprise AI adoption. In Q4, our annualized AI revenues surpassed $2.3 billion, driven by the accelerated deployment of AI solutions. We experienced strong deal momentum across new services in Enterprise Transformation, Digital Engineering, and Cloud Modernization. Our investment in HyperVault was a catalyst in forging strategic partnerships with OpenAI, AMD and ABB, further strengthening our positioning across Infrastructure-to-Intelligence,” said Aarthi Subramanian, Executive Director - President and Chief Operating Officer.

TCS shares ended 1.2% higher at ₹2,590 ahead of its earnings announcement.