TCS Q2 results: From strategic AI investments to deal wins and more; here are key highlights from the results

The Tata Consultancy Services reported its Q2FY26 earnings at 15:48 hours on Thursday. Shares closed 1% higher at ₹3,060 apiece on the NSE ahead of the earnings announcement. The company reported steady growth in overall earnings in line with market expectations. In addition to the earnings release company also announced major developments regarding investments in AI.

Steady topline growth

On a sequential basis, the company’s revenue for the quarter jumped 3.7% QoQ at ₹65,799 crore and 0.8% growth in constant currency terms. The growth was primarily driven by a steady rise in the BFSI and Life Sciences segment, which now contribute 32.2% and 15% to the overall revenue. While on a YoY basis, the revenue dropped 3.3% in constant currency terms. The US continues to remain a major contributor to the revenue at 48.8% which remained steady over the previous quarter and the previous year's same quarter.

Margin expansion

With steady revenue growth and a modest increase in the employee benefit expense, the EBITDA margin for the quarter expanded by 70 bps sequentially to 25.2% vs 24.5% in the previous quarter. The margin expansion was also aided by currency depreciation.

Investments in AI

The company announced that it has set its course to become the world’s largest AI-led technology services company. For this purpose, the company announced strategic investments which include building of new entity with world-class AI infrastructure, which comprises a 1 GW capacity AI data centre in India. Further, the board approved the acquisition of ListEngage with deep capabilities in Salesforce.

Interim dividend

The company announced an interim dividend of ₹11 per share with a record date of 15th October 2025.

sequential jump in deal wins

The total deal wins during the quarter stood at $10 billion, as against $9.4 billion in the previous quarter. The modest growth in the deal wins reflects a challenging environment for the company.