Tata Consultancy Services (TCS) on Thursday reported a strong set of numbers for Q4FY26 with net profit rising 12.2 per cent year-on-year to ₹13,718 crore, compared with ₹12,224 crore in the corresponding period last year. Sequentially, profit surged nearly 29 per cent from ₹10,657 crore in Q3FY26, beating market expectations, driven by robust deal wins during the quarter.
TCS also reversed a two-quarter decline in workforce, adding a net 2,356 employees during Q4FY26.
For the full financial year FY26, net profit stood at ₹49,210 crore, registering a modest increase of 1.3 per cent over ₹48,533 crore in FY25.
Revenue in Q4FY26 came in at ₹70,698 crore, marking a 9.64 per cent rise from ₹64,479 crore a year earlier and a 5.38 per cent increase sequentially from ₹67,087 crore in the previous quarter. The company said its total contract value (TCV) for Q4FY26 stood at $12 billion, including three mega deals, while full-year TCV reached $40.7 billion.
K. Krithivasan, MD and CEO, said the company has delivered three consecutive quarters of sequential growth, supported by strong deal momentum and its artificial intelligence (AI) led positioning across services. He said that growth was broad-based across key markets and industries, even as macroeconomic headwinds persist.
Among geographies, the UK and North America recorded sequential growth of 2.4 per cent and 1.4 per cent, respectively, on a constant currency basis.
Headcount up
TCS’ total headcount stood at 584,519 at the end of the quarter, compared with 582,163 in Q3FY26, though still lower than 607,979 in Q4FY25.
The sequential increase comes amid a broader operational reset as the company trims roles and optimises costs in response to rapid technological shifts. Restructuring expenses for FY26 rose sharply to ₹1,388 crore compared with ₹253 crore in Q3FY26.
Voluntary attrition edged up marginally to 13.7 per cent on a last-twelve-month basis from 13.5 per cent in the previous quarter.
Sudeep Kunnumal, chief HR officer, said the company in Q4FY26 continues to invest in a future-ready workforce, with hiring focused on both experienced professionals and campus recruits. He added that annual salary hikes across grades have been implemented from April 1.
AI revenue
The company highlighted strong traction in artificial intelligence-led business, with annualised AI revenue crossing $2.3 billion in Q4FY26, supported by rising enterprise adoption.
Aarthi Subramanian, ED, president and COO, said FY26 was a pivotal year for enterprise AI adoption. She said TCS saw strong deal momentum across enterprise transformation, digital engineering and cloud modernisation. Investments in its HyperVault platform also helped forge partnerships with OpenAI, AMD and ABB, strengthening its capabilities across infrastructure and intelligence layers.
The board recommended a final dividend of ₹31 per share, taking the total shareholder payout for FY26 to ₹39,571 crore.