Tata Consultancy Services (TCS) reported its consolidated financial results for the fiscal year and quarter ending March 31, 2026. For the full fiscal year 2026, revenue stood at ₹267,021 crore, marking a 4.6% year-over-year growth (or -2.4% in constant currency). The operating margin for FY26 was 25%, an increase of 70 basis points year-over-year, representing the highest operating margin in the last four years. Similarly, the net margin for FY26 was 19.8%, up 80 basis points year-over-year, also a four-year high. In the fourth quarter of FY26, revenue was ₹70,698 crore, showing a 5.4% sequential growth (or 1.2% sequentially in constant currency). The company's annualized AI revenue surpassed $2.3 billion in Q4FY26. TCS also reported strong Total Contract Value (TCV) performance, with $40.7 billion for FY26 and $12 billion for Q4, including three mega deals for the quarter and five for the year. The company saw healthy client additions across revenue bands, with an increase in clients in the $100M+ (to 66), $50M+ (to 139), and $1M+ (to 1,397) categories year-over-year. Employee headcount was 584,519. The company proposed a final dividend of ₹31 per share, subject to approval at the Annual General Meeting, contributing to a total FY26 shareholder payout of ₹39,571 crore in the form of dividends. K Krithivasan, CEO and MD, highlighted the third consecutive quarter of sequential growth, driven by mega deals and a strong TCV, underpinned by the company's five-pillar strategy and AI-led positioning. Aarthi Subramanian, Executive Director, noted the pivotal year for enterprise AI adoption, with annualized AI revenues exceeding $2.3 billion in Q4FY26 and accelerated deployment of AI solutions. Samir Seksaria, CFO, emphasized intensified investments through a Build-Partner-Acquire approach, including acquisitions, while maintaining margin expansion due to operational rigor and a resilient balance sheet. TCS also announced several strategic collaborations and partnerships, including with AMD for co-developing industry-specific AI and GenAI solutions, OpenAI for powering AI-led innovation across Tata Group companies and joint global AI transformation efforts, and ABB to strengthen IT infrastructure and digital/industrial AI initiatives. Other partnerships include those with Honeywell, ServiceNow, NVIDIA, Cisco, GitLab, Zscaler, Google Cloud, and Pearson, focusing on areas like AI, digital transformation, cloud modernization, and intelligent automation.
