Tata Consultancy Services (TCS) announced its financial results for the quarter ending September 30, 2025, showcasing steady growth driven by cloud, data, and AI-led transformations.
Here are key facts about TCS’s Q2 FY2026 results and major global developments.
Revenue Crosses $7.4 Billion
TCS reported revenue of $7,466 million, up 0.6 percent quarter-on-quarter and 0.8 percent in constant currency, reflecting resilient performance despite global macroeconomic challenges.
Operating Margin Expands to 25.2 percent
Operating margin improved by 70 basis points QoQ, reaching 25.2 percent, supported by efficiency gains and improved utilization.
Net Income Grows 3 percent
Net income stood at $1,464 million, registering a 3 percent year-on-year increase, while net margin improved to 19.6 percent, demonstrating strong operational discipline.
TCS announced new business entity to build AI infrastructure – 1 GW capacity AI datacenter in India.
TCS also announced the acquisition of ListEngage with capabilities in Salesforce.
Diversified revenue contributions
TCS reported diversified revenue contributions across key industry verticals for Q2 FY26. The BFSI segment remained the largest contributor, accounting for 32.2 percent of total sales, followed by Consumer Business at 15.3 percent and Life Sciences & Healthcare at 10.5 percent.
Manufacturing contributed 8.8 percent, while Technology & Services generated 8.5 percent. Communication & Media and Energy, Resources & Utilities each accounted for 5.9 percent of revenue. Regional Markets & Others contributed 12.9 percent.
Compared to Q1 FY26, BFSI showed marginal growth from 32.0 to 32.2 percent, while Consumer Business slightly declined from 15.6 to 15.3 percent. Life Sciences & Healthcare improved modestly, and Manufacturing, Technology & Services, and Energy-related sectors recorded stable sequential growth, indicating broad-based performance across verticals.
Robust Deal Wins with $10 Billion TCV
TCS reported a Total Contract Value (TCV) of $10 billion in Q2 FY2026, highlighting strong client confidence in its digital transformation capabilities across industries and geographies.
Focus on AI-Led Transformation
CEO K Krithivasan reaffirmed TCS’s ambition to become the world’s largest AI-led technology services company. The company is investing heavily in AI infrastructure, ecosystem partnerships, and talent transformation to power enterprise-wide innovation.
Strong Growth in Cloud, Data, and AI
COO Aarthi Subramanian highlighted that Data, Cloud, and AI-powered transformation continue to drive growth. The newly launched AI and Services Transformation unit will further scale these initiatives globally.
Expanded Strategic Partnerships Across Sectors
TCS deepened several large global partnerships:
Tryg: Signed a $647 million, seven-year deal to simplify and standardize operations across Denmark, Sweden, and Norway.
ALDI SOUTH: Extended its engagement to modernize IT infrastructure globally using TCS Cloud Operations Solution.
Weatherford International: Collaborated to drive AI-led efficiencies in finance, supply chain, and HR.
Strengthening Digital Sovereignty in the Philippines
TCS partnered with NOW Corporation’s telecom arm to support national digital sovereignty initiatives, focusing on sovereign cloud, cyber-defense, and financial inclusivity.
New Digital Transformation Wins in Retail, Pharma, and Media
Recent wins include:
Kesko (Finland): To lead IT modernization across the Nordics and Baltics.
Unilab (Philippines): To drive a strategic cloud migration for operational agility.
ARN Media (Australia): To create a cloud-first data platform for automation and analytics.
The Warehouse Group (New Zealand): To modernize technology platforms for retail efficiency.
Launch of Chiplet-Based System Engineering Services
TCS introduced Chiplet-based System Engineering Services to help semiconductor companies innovate faster and build powerful processors efficiently, marking a key step in the semiconductor engineering domain.
Conclusion
TCS’s Q2 FY2026 results underline its strategic shift toward AI-first, cloud-native, and automation-driven services. With a solid financial performance, expanding global partnerships, and an ambitious focus on building AI infrastructure, TCS is well-positioned to strengthen its leadership in the global technology services landscape.
Rajani Baburajan
