ndia's largest IT company opened the Q4 FY2026 earnings season on April 9 with numbers that largely met — and in some metrics beat — analyst expectations. The results matter not just for TCS shareholders, but because TCS is seen as a bellwether for the entire Indian IT sector's health.
Here is everything the company reported.
The Headline Numbers
Net profit: Rs 13,784 crore for Q4 FY26, a 12.12 percent increase year-on-year against Rs 12,293 crore in Q4 FY25. On a sequential basis — comparing this quarter to the previous one — profit rose 29 percent, recovering sharply from what had been a weaker Q3.
Revenue: Rs 70,698 crore for the quarter. That represents 9.64 percent growth year-on-year from Rs 64,479 crore. Sequentially, revenue grew 5.38 percent from Rs 67,087 crore in Q3.
Operating margin for the full year FY26 came in at 25 percent — the highest in four years, up 70 basis points year-on-year. Net margin for the full year was 19.8 percent, also the highest in four years.
TCS declared a final dividend of Rs 31 per share. Total shareholder payout through dividends for FY26 reached Rs 29,571 crore.
AI Revenue: A New Milestone
The standout number from TCS's perspective was AI. The company said annualised AI revenue crossed $2.3 billion in Q4 FY26. That translates to roughly Rs 21,000 crore annually.
TCS has been building out AI-related capabilities for several years, and this is the first time the company has crossed the $2 billion threshold on an annualised basis. The company has acquired 1,833 AI-related patents, of which 573 have been granted. Over 270,000 employees — nearly half its workforce — now have higher-order AI and ML skills, the company said.
The partnership with AMD announced in Q4 — for co-developing industry-specific AI and Generative AI solutions — is one signal of how TCS is approaching the AI market: combining its domain expertise and systems integration strengths with technology partners' computing capabilities.
Deal Wins
Total Contract Value for FY26 came in at $40.7 billion for the full year, and $12 billion for Q4 specifically. TCS described both figures as among the highest-ever recorded by the company.
Client metrics improved. Clients spending more than $100 million a year with TCS numbered 66 — up by 2 from the previous year. Clients spending more than $50 million rose by 9 to 139. The number of clients spending more than $1 million grew by 65 to 1,397. These are signs of both deepening relationships with large clients and broadening the base of mid-tier clients.
Workforce and Learning
TCS ended FY26 with 584,519 employees. The company invested 69 million learning hours during the year — a 23 percent increase year-on-year. It acquired 5.2 million new competencies across its workforce.
This matters in the context of the ongoing debate about whether AI will reduce the need for IT services workers. TCS is betting that workers trained in AI become more productive and valuable, rather than being replaced. The Rs 10,000 crore investment in talent development signals that belief.
Share Price and Market Reaction
TCS shares were trading at Rs 2,587.75 before the results were released post-market on April 9, up 1.09 percent on the day. Analyst reactions have been broadly positive, though some noted that revenue growth in dollar terms remains modest and that the US-Iran war's impact on global IT spending discretion is still a watchable risk.
IDBI Capital had a price target of Rs 3,733 ahead of results. Centrum Broking's target was Rs 4,457.
The Q4 result officially opens earnings season for Indian IT. Infosys, HCL Technologies, Wipro, and Tech Mahindra will all report in the coming days and weeks.