TCS Q1 FY26 Results: Revenue and Net Profit Recorded Growth, Declared ₹11 Interim Dividend

On July 10, 2025, Tata Consultancy Services released its consolidated financial results for the quarter ended June 30, 2025 (Q1FY26). As a result of release of earnings, TCS share price will be on investors’ radar on July 11. The leading IT giant, TCS continued to demonstrate resilience amid global headwinds by accelerating its AI and digital transformation capabilities across industry verticals.

TCS Q1 Results: Financial Performance

• Revenue Reported at ₹63,437 crore, marking a 1.3% increase year-over-year, though experiencing a 3.1% YoY decline in constant currency terms.
• Operating Margin Expanded by 30 basis points sequentially, reaching 24.5%.
• Net Income Rose to ₹12,760 crore, reflecting a 6.0% YoY increase, with a net margin of 20.1%.
• Cash Flow Remained Robust, with net cash from operations at ₹12,804 crore, equivalent to 100.3% of net income.
• Dividend Announced at ₹11 per share; record date set for July 16, 2025, with a payment date of August 4, 2025.

TCS Attrition Rate Soared to 13.8%

TCS continued to strengthen its talent base, with the total workforce reaching 613,069 employees by the end of Q1 FY26. The company recorded a net headcount addition of 6,071 employees on a year-over-year basis, signaling sustained hiring momentum. Meanwhile, the attrition rate in IT services declined to 13.8% over the last twelve months, underscoring the effectiveness of TCS’s employee engagement and retention strategies.

Service Highlights

AI & Data Services

The quarter witnessed robust growth in the AI and Data unit, as enterprises moved from pilots to full-scale Generative AI (GenAI) deployments. Major demand drivers included AI-driven transformation, automation of software development life cycles (SDLC), IT operations, and modernisation of data platforms.

• WisdomNext™ is enhanced with agentic AI features, reinforcing TCS’s leadership in enterprise AI.
• AI Workforce Scaled to over 114,000 skilled professionals.

Cloud Services Reorganised

TCS realigned its cloud service units by integrating Public Cloud, Infrastructure Services, and TCS Cloud into a unified Hybrid Cloud offering.

• Key Initiatives Included Cloud Contact Center transformation, legacy modernisation, and Cognitive Network Services.
• Partnerships Deepened, particularly with Microsoft, for co-developing AI-enabled cloud solutions.

Cybersecurity Strengthened

Enterprise focus shifted towards:

• Identity & Access Management
• Managed Detection & Response (MDR)
• Governance, Risk & Compliance (GRC)

Emerging interest was observed in Enterprise Attack Surface Management and Cloud & Data Security, with AI-driven security solutions gaining traction.

Strategic Client Engagements

• A Leading Consumer Electronics Retailer partnered with TCS to build a scalable GenAI ecosystem using WisdomNext™, featuring agentic architecture, self-serve apps, and advanced governance frameworks.
• A European Life Sciences Major expanded its S/4HANA business transformation across 80 countries, with TCS driving design, build, and deployment globally.
• ICICI Securities Chose TCS BaNCS™ to modernise its trading platform, enhancing agility, customer experience, and core brokerage operations.
• Jazeera Airways collaborated with TCS to lead its digital transformation using agentic AI, aiming to unlock new revenue and deliver hyper-personalised services.
• A Global Insurance Leader deepened its partnership with TCS to embed next-gen AI in underwriting and pricing, targeting improved risk assessment, reduced turnaround, and significant cost efficiencies.

Also Read: HUL Appointed Priya Nair as CEO of HUL: All You Need to Know

K Krithivasan, Chief Executive Officer and Managing Director, said, “The continued global macro-economic and geo-political uncertainties caused a demand contraction. On the positive side, all the new services grew well. We saw robust deal closures during this quarter. We remain closely connected to our customers to help them navigate the challenges impacting their business, through cost optimisation, vendor consolidation and AI-led business transformation”

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