TCS net profit rises 12% in fourth quarter of FY26

India’s largest information technology (IT) services exporter, Tata Consultancy Services (TCS) registered a 12.2% rise in net profit and a 9.6% increase in revenue for the fourth quarter of FY26, surpassing market expectations.

The growth was supported by mega deals and accelerated deployment of AI solutions.

The net profit for the fourth quarter of FY26 was Rs 13,718 crore, compared to Rs 12,224 crore in the similar period a year ago. The revenue during this period stood at Rs 70,698 crore as against Rs 64,479 crore in the similar period a year ago.

TCS CEO K Krithivasan said, “We are pleased to report the third consecutive quarter of sequential growth, supported by three mega deals and a $12 billion TCV (total contract value), 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.”

However, the CEO cautioned, there are headwinds from the macro-economic environment. But he was confident of sustained investments in technology by customers.

TCS COO Aarthi Subramanian said, "FY26 marked a pivotal year for enterprise AI adoption. In Q4, our annualised 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 modernisation.”

The company's TCV was $40.7 billion for FY26 and $12 billion for the fourth quarter. It said this was the highest TCV with three mega deals in the quarter and five during the year.

For the full year, the company reported a revenue of Rs 2,67,021 crore, at a growth of 4.6% over FY25. The net profit for the year was Rs 52,820 crore (Rs 48553 crore).

The company attributed this growth largely to the segments of energy, resources & utilities, and consumer business. In terms of geography, the UK had the highest growth followed by North America.

Operating margins stood at 25.3% at the end of the fourth quarter, compared to 24.2% a year ago during the similar period.

There were positive developments on the human resources front as TCS added 2,356 employees in Q4. Total headcount stood at 5,84,519. However, this number is much below what it was one year ago—6,07,979.

TCS Chief HR Officer Sudeep Kunnumal said, “Building an AI‑first culture and equipping our people with AI‑ready skills remained a key priority in FY26 and will continue into FY27, as we align closely with our customers’ evolving needs.”