Tata Consultancy Services (TCS) reported its Q2 FY26 results during an earnings call on October 9, 2025. Key highlights included sequential revenue growth of 3.7% in reported currency and a robust TCV of $10 billion. TCS is focused on becoming the world’s largest AI-led technology services company with continued investments in talent, infrastructure, and ecosystem partnerships. The company maintains a positive outlook for FY26 international revenue growth.
Financial Performance Highlights
In Q2 FY26, Tata Consultancy Services (TCS) reported a revenue of ₹65,799 crore, representing a sequential growth of 3.7% in reported currency and 2.4% year-on-year. Constant currency revenue growth was 0.8% quarter-on-quarter. The operating margin stood at 25.2%, reflecting a 70 basis points sequential improvement. Net income margin was 19.6%, and EPS grew by 8.4% year-on-year.
Deal Wins and TCV
TCS reported a total contract value (TCV) of $10 billion in Q2. BFSI TCV was $3.2 billion, the Consumer Business Group contributed $1.8 billion, and North America TCV was $4.3 billion. Overall TCV increased sequentially by 6.5% and year-on-year by 16%. Key deals include a significant win with Tryg Insurance.
Strategic Focus on AI
TCS is focused on transforming into the world’s largest AI-led technology services company, enabling business, government, and society. Investments are being made across five pillars: internal AI transformation (tcsAI), redefining services in a Human + AI model, building a future-ready talent model, making AI real for clients, and AI ecosystem play. TCS is deepening partnerships in the AI ecosystem and venturing into new business areas.
Talent and Workforce
TCS announced a wage hike for over 80% of its workforce, effective from September 1, 2025. The company is focused on creating personalized learning pathways using AI. TCS’ global workforce stands at 593,314 at the close of Q2 FY26. A severance package of ₹1,135 crore was provided during the quarter.
Investments and Expansion
TCS is investing in infrastructure, including a new innovation center in Singapore and an AI-driven operations center in Mexico City. The company is expanding its pan-India footprint in both Tier-1 and Tier-2 cities. TCS plans to build a Sovereign AI datacenter with a capacity of up to 1 Giga Watt. They have also announced the acquisition of ListEngage, a leader in marketing tech and Salesforce.
Outlook
TCS anticipates FY26 international revenue growth to be better than the previous fiscal year. The company remains committed to sustainable long-term growth with superior profitability. They will continue to prioritize the return of substantial free cash flow back to shareholders.
Source: BSE
