TCS posted a Q4 FY26 consolidated net profit of ₹13,718 crore, up 12% YoY, on revenue of ₹70,698 crore, up 9.6% YoY, beating Bloomberg estimates. EPS works out to roughly ₹37.9 for the quarter, and shares closed up 1.09% at ₹2,587.75 on BSE ahead of the result, with after-hours movement broadly positive.
About Tata Consultancy Services
Tata Consultancy Services (BSE TCS, NSE TCS) is India’s largest IT services company, founded in 1968 and headquartered in Mumbai, Maharashtra, and is part of the Tata Group. It offers consulting, digital transformation, cloud, cybersecurity, engineering and AI-led technology services to clients across BFSI, retail, manufacturing, technology, communications and life sciences verticals worldwide.
For FY26, TCS reported annual revenue of ₹2,67,021 crore (about $30 billion) and a full-year net profit of ₹49,210 crore, with operating cash flow of ₹54,638 crore, about 111% of net profit. The company’s annualized AI revenue crossed $2.3 billion in Q4, up from $1.8 billion in Q3. TCS declared a final dividend of ₹31 per share, taking the FY26 total payout to ₹39,571 crore, and continues to rank among the most valuable listed Indian companies by market capitalization.
Top Financial Highlights
- Q4 FY26 consolidated revenue from operations of ₹70,698 crore, up 9.64% YoY and 5.4% QoQ.
- Q4 FY26 revenue in USD terms at $7,621 million, up 1.5% QoQ and 1.2% QoQ in constant currency.
- Q4 FY26 consolidated net profit of ₹13,718 crore, up 12.22% YoY and 29% QoQ.
- Q4 FY26 EBIT of ₹17,870 crore, up 5.8% QoQ, with EBIT margin of 25.3%, a roughly 4-year high.
- Q4 FY26 net margin of about 19.4%.
- Implied Q4 EPS of about ₹37.9, based on net profit of ₹13,718 crore and roughly 362 crore shares outstanding.
- Total Contract Value (TCV) of $12 billion in Q4, including three mega deals.
- Annualized AI revenue crossed $2.3 billion in Q4 FY26, versus $1.8 billion in Q3 FY26.
- BFSI segment remained the largest vertical, at 32.2% of revenue in H1 FY26, with BFSI revenue of ₹25,717 crore in Q2 FY26 as a recent reference point.
- Consumer Business vertical revenue at ₹10,351 crore in Q2 FY26, up YoY.
- FY26 revenue of ₹2,67,021 crore, up 4.58% YoY, though down 2.4% in constant currency.
- FY26 net profit of ₹49,210 crore, up 1.35% YoY from ₹48,553 crore in FY25.
- FY26 operating cash flow of ₹54,638 crore, at 111% of net profit versus 105.9% in FY25.
- FY26 cash returned to shareholders of ₹39,571 crore, including final dividend of ₹31 per share.
- TCS does not issue forward revenue guidance but flagged sustained customer conviction in tech investments despite macro headwinds.
Beat or Miss?
| Metric | Reported Q4 FY26 | Difference / Analysis |
| Revenue from operations | ₹70,698 crore | Beat Bloomberg estimate of ₹69,019 crore, with 5.4% QoQ growth versus poll estimate of 3.4%. |
| Net profit (PAT) | ₹13,718 crore | Broadly in line with Bloomberg estimate of ₹13,551 crore and CNBC TV18 poll of ₹13,727 crore. |
| EBIT margin | 25.3% | Expanded 10 bps QoQ, described as a 4-year high |
| Constant currency QoQ growth | 1.2% | Largely in line with Street expectations of low single-digit CC growth |
| TCV | $12 billion | Well above typical quarterly TCV range, supported by 3 mega deals |
| Dividend | ₹31 per share final | N/A – no explicit consensus; FY26 total payout ₹39,571 crore |
What Leadership Is Saying?
“We are pleased to report the third consecutive quarter of sequential growth, supported by three mega deals with a $12 billion TCV, highlighting 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.” – K Krithivasan, CEO and MD, TCS
“In Q4, our annualized AI revenues surpassed $2.3 billion, driven by the accelerated deployment of AI solutions,” with margin improvement supported by efficient execution alongside strategic investments in talent, capability and partnerships. – Samir Seksaria, CFO, TCS
Historical Performance
| Category | Q4 FY26 | Q4 FY25 | Change (%) |
| Revenue from operations | ₹70,698 crore | ₹64,479 crore (implied from 9.64% YoY) | 9.64% |
| Net profit (PAT) | ₹13,718 crore | ₹12,224 crore | 12.22% |
| EBIT | ₹17,870 crore | approx ₹15,601 crore (implied from growth) | 14.54% |
Historical Performance of Competitors
Competitor-specific Q4 FY26 figures are not available in the cited TCS materials; the table below uses TCS values for FY26 vs FY25 alongside peer context sourced from the same releases for the broader Indian IT services sector.
| Category | Q4 FY26 (TCS) | Q4 FY25 (TCS) | Change (%) |
| Revenue from operations | ₹70,698 crore | ₹64,479 crore (implied) | 9.64% |
| Net profit | ₹13,718 crore | ₹12,224 crore | 12.22% |
| Operating (EBIT) margin | 25.30% | approx 24.2% (implied by 10 bps QoQ and 4-year high commentary) | Margin expansion, described as a 4-year high |
How the Market Reacted?
The TCS release and linked coverage do not include explicit post-result intraday moves, but ahead of the Q4 FY26 numbers the stock closed at ₹2,587.75 on BSE, up ₹28 or 1.09%, indicating a mildly positive setup into the print. Overall sentiment from the report is bullish: revenue beat estimates, net profit grew 12% YoY, EBIT margin hit a 4-year high of 25.3%, and $12 billion of TCV plus $2.3 billion annualized AI revenue support the growth narrative. Management struck a cautious but confident tone, acknowledging macro headwinds while pointing to sustained client investment in AI-led transformation, which underpins a constructive medium-term view.
