TCS AI revenue surpasses $2.3 billion as deal momentum drives 70 bps margin growth

Indian IT services firm Tata Consultancy Services (TCS) on Thursday, April 9, said its annualised artificial intelligence (AI) revenues surpassed $2.3 billion in the quarter ended March 31, 2026 (Q4 FY26), driven by accelerated deployment of AI solutions.

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

The country's largest software services company had reported a consolidated net profit of ₹13,718 crore in Q4 FY26, 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 the March quarter from ₹64,479 crore. In constant currency terms its revenue rose 1.2% sequentially.

The firm 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.

“Even as we scaled our investments in AI-led growth opportunities, our margins expanded by 70 basis points, reflecting our strong operational rigour. Our solid cash flow and resilient balance sheet position us to advance strategic priorities, pursue timely investments, and maximise growth,” said TCS Chief Financial Officer Samir Seksaria.

Here are some major AI deals from Q4 FY26

• In Q4, TCS has entered a strategic collaboration with AMD to co-develop industry-specific AI and GenAI solutions, combining their respective strengths in domain expertise and high-performance computing. The partnership aims to help enterprises modernise hybrid cloud and edge environments, deploy AI-powered workplace solutions, and accelerate innovation across cloud-to-edge workloads.

As part of the expanded collaboration, TCS HyperVault and AMD will jointly develop a rack-scale AI infrastructure based on AMD’s “Helios” platform. The two companies will also offer an AI-ready data centre blueprint supporting up to 200 MW capacity and work with hyperscalers and AI firms to speed up data centre build-outs in India for sovereign AI initiatives.

• TCS also announced a multi-dimensional strategic partnership with OpenAI that spans multiple high-impact areas, including powering AI-led innovation across Tata Group companies, joint efforts to drive AI transformation across industries globally, setting up AI infrastructure and social impact.

TCS’ HyperVault and OpenAI have agreed to a multi-year partnership to develop AI infrastructure in India, with 100 MW capacity in the initial phase and an option to scale to 1 GW. This infrastructure will power next-generation AI workloads and position India as a global AI hub.

• During the reporting quarter, TCS also signed a Memorandum of Understanding (MoU) with ABB to strengthen the two companies’ strategic collaboration across IT infrastructure and applications, digital and industrial AI initiatives, data centres, and other emerging technologies.

• The company signed a multi-year partnership with ServiceNow for developing trusted, AI-powered solutions on the ServiceNow platform to reimagine back-office functions such as HR, finance, supply chain, procurement, and employee services.

• TCS introduced a rapid outcome AI platform built on NVIDIA to help organisations accelerate their journey from AI experimentation to scalable, real-world business outcomes.

Ahead of the earnings, TCS shares settled at ₹2,589 apiece on the National Stock Exchange, gaining 1.16%.