Announced strategic deal wins
- Five-year strategic partnership with Porsche AG and acquisition of MHP, Porsche’s Germany-based management and IT consulting subsidiary
- Agreement to transition Best Buy’s Global Capability Center (GCC) in India to TCS, and transform into an AI Capability Center (AICC)
New Delhi, October 8, 2026: Tata Consultancy Services (BSE: 532540, NSE: TCS) reported its consolidated financial results according to Ind AS and IFRS, for the quarter ending September 30, 2026.
Highlights of the Quarter Ended September 30, 2026
- Q2 Revenue at $7,642 Mn; Growth +0.2% QoQ, +2.4% YoY in USD, +0.5% QoQ in CC
- International Revenue grows 1.2% QoQ in Constant Currency
- BFSI (+2.5% QoQ CC), Manufacturing (+3.1% QoQ CC) and Technology & Services (+3.1% QoQ CC) led growth
- Annualized AI Revenue at US$ 3.1 billion in Q2FY27, crosses 10% of Revenue
- Q2 Total Contract Value (TCV): US$ 9.6 billion
- Operating Margin at 24.0%
- Net Profit at $1,450 Mn | Net Margin at 19.0%
- Net Cash from Operations at $1.48 Bn i.e. 102.2% of Net Income
- Workforce strength: 598,056; LTM Attrition (IT Services): 13.3%
- Dividend per share: ₹12 per share| Record date 14-Oct-2026 | Payment date 30-Oct-2026
K Krithivasan, Chief Executive Officer and Managing Director, said “We are pleased with the broad-based growth in all our international markets and most industry segments. This quarter we announced two unique deals with Porsche and Best Buy which represent a new category of transformation partnerships. Together with our clients, we are building repeatable value platforms that will industrialize AI at scale.“
Aarthi Subramanian, Executive Director – President and Chief Operating Officer, said “AI momentum remained strong, with annualized AI revenues now exceeding $3 billion. Demand for delivering business outcomes with AI-native solutions, AI-led transformation of enterprise systems and autonomous GBS, continues to accelerate. Cybersecurity remains a top priority as customers sharpen their focus on resilience and recovery. TCS’ Human+AI Services Autonomy model for AMS earned top rankings from customers, underscoring the strength of our differentiated capabilities.”
Samir Seksaria, Chief Financial Officer, said, “We continued to strengthen our capabilities through acquisitions, partnerships and investments in niche talent. In addition, we maintained strong cash conversion and industry-leading profitability, along with our focus on creating sustainable long-term value for all stakeholders.”
| Industry | Composition (%) | Q-o-Q CC Growth (%) |
Y-o-Y CC Growth (%) |
|||
| Q2 FY26 | Q1 FY27 | Q2 FY27 | ||||
| BFSI | 32.2 | 32.1 | 32.8 | 2.5 | 3.9 | |
| Consumer Business | 15.3 | 15.0 | 14.9 | – 0.7 | – 1.0 | |
| Life Sciences & Healthcare | 10.5 | 10.3 | 10.3 | 0.3 | 0.5 | |
| Manufacturing | 8.8 | 8.7 | 9.0 | 3.1 | 4.2 | |
| Technology & Services | 8.5 | 8.5 | 8.6 | 3.1 | 4.8 | |
| Communication & Media | 5.9 | 5.8 | 5.8 | 0.1 | 0.5 | |
| Energy, Resources and Utilities | 5.9 | 6.3 | 6.2 | – 0.5 | 5.7 | |
| Regional Markets & Others | 12.9 | 13.3 | 12.4 | – 5.8 | 3.6 | |
| Total | 100.0 | 100.0 | 100.0 | 0.5 | 2.8 | |
Growth by Markets
| Geography | Composition (%) | Q-o-Q CC Growth (%) |
Y-o-Y CC Growth (%) |
|||
| Q2 FY26 | Q1 FY27 | Q2 FY27 | ||||
| Americas | ||||||
| North America | 48.8 | 48.3 | 48.3 | 0.4 | 1.5 | |
| Latin America | 1.9 | 2.0 | 2.1 | 4.3 | 1.7 | |
| Europe | ||||||
| UK | 17.5 | 17.2 | 17.8 | 3.5 | 4.5 | |
| Continental Europe | 15.3 | 15.4 | 15.2 | 0.4 | 3.3 | |
| Asia Pacific | 8.3 | 8.4 | 8.6 | 2.0 | 4.1 | |
| India | 5.8 | 6.2 | 5.5 | – 10.3 | 6.0 | |
| MEA | 2.4 | 2.5 | 2.5 | 0.4 | 2.0 | |
| Total | 100.0 | 100.0 | 100.0 | 0.5 | 2.8 | |
Partner Speak
The above patent portfolio is inclusive of following AI led Inventions: 2,176 patents filed (cumulative) out of which 180 were applied during the quarter and 649 patents granted (cumulative) out of which 47 were granted during the quarter.
Awards and Recognition
- Positioned the foremost Leader or ranked #1 in 12 competitive assessments published by leading research houses. Notable reports where TCS ranked #1 are: HFS SaS Star Ratings Report on Agentic Application Management Services 2026 (AMS), NelsonHall NEAT Report on Salesforce Services 2026 – Overall and ISG Lens Report on ISG Provider Lens® Microsoft AI and Cloud Ecosystem – U.S 2026: Azure Data Transformation and AI Services
- Recognized by Forbes among America’s Best Employers by State 2026.
- Achieved its first-ever AAA brand strength rating and was ranked India’s most valuable IT services brand in the Brand Finance India 100 ‘2026 report.
- Earned multiple honors at the 2026 Stevie Awards, recognizing innovation in AI, talent development, HR technology, predictive operations, competitive intelligence, and the AI-powered TCS RunConcierge platform.
- Named AI Adopter of the Year at the India Risk Management Awards 2026 for advancing responsible AI-driven risk management.
- Honored as EDB GSI Partner of the Year 2026 for enabling AI-ready data foundations and driving customer innovation.
- Won Best Paper at DVCon India 2026 for pioneering AI-driven semiconductor verification research.
- Received the Asian Development Bank (ADB) Performance Excellence Award for outstanding delivery as a strategic technology partner.
- Recognized by IBM as its Most Influential Services Partner in APAC.
- Named Cloudera’s APAC Strategic Partner of the Year for advancing data- and AI-led transformation.
- Won multiple awards at the ISG Paragon Awards Asia 2026 for excellence in business transformation, innovation, public sector modernization, and operational excellence.
- Won five Brandon Hall HCM Excellence Awards for leadership development, employee engagement, onboarding, and social impact initiatives.
IFRS Financial Statements
Consolidated Statements of Comprehensive Income
For the three-month periods ended Sep 30, 2025, June 30, 2026 and Sep 30, 2026
(In millions of $, except per share data)
| Three-month period ended Sep 30, 2025* |
Three-month period ended June 30, 2026* |
Three-month period ended Sep 30, 2026 |
|
| Revenue | 7,466 | 7,624 | 7,642 |
| Cost of revenue | 4,512 | 4,605 | 4,643 |
| Gross margin | 2,954 | 3,019 | 2,999 |
| SG & A expenses | 1,075 | 1,193 | 1,166 |
| Operating income | 1,879 | 1,826 | 1,833 |
| Other income (expense), net | 73 | 137 | 112 |
| Income before income taxes | 1,952 | 1,963 | 1,945 |
| Income taxes | 482 | 495 | 490 |
| Income after income taxes | 1,470 | 1,468 | 1,455 |
| Non-controlling interests | 6 | 8 | 5 |
| Net income | 1,464 | 1,460 | 1,450 |
| Earnings per share in $ | 0.40 | 0.40 | 0.40 |
*Excludes exceptional items
Consolidated Statements of Financial Position
As of March 31, 2026, and Sep 30, 2026
(In millions of $)
| As of March 31,
2026 |
As of Sep 30,
2026 |
|
| Assets | ||
| Property and equipment | 1,500 | 1,533 |
| Right-of-use Assets | 1,166 | 1,219 |
| Intangible assets and Goodwill | 1,211 | 1,197 |
| Accounts Receivable | 6,102 | 6,124 |
| Unbilled Revenues | 1,918 | 2,048 |
| Invested Funds | 5,287 | 5,980 |
| Other current assets | 1,360 | 1,108 |
| Other non-current assets | 956 | 908 |
| Total Assets | 19,500 | 20,117 |
| Liabilities and Shareholders’ Equity | ||
| Shareholders’ Funds | 11,559 | 12,628 |
| Current liabilities | 6,439 | 6,036 |
| Non-current liabilities | 1,369 | 1,346 |
| Non-controlling interests | 133 | 107 |
| Total Liabilities | 19,500 | 20,117 |
About Tata Consultancy Services Ltd (TCS)
Tata Consultancy Services (TCS) (BSE: 532540, NSE: TCS) is a digital transformation and technology partner of choice for industry-leading organizations worldwide. Since its inception in 1968, TCS has upheld the highest standards of innovation, engineering excellence and customer service.
Rooted in the heritage of the Tata Group, TCS is focused on creating long term value for its clients, its investors, its employees, and the community at large. With a highly skilled workforce spread across 55 countries and 202 service delivery centers across the world, the company has been recognized as a top employer in six continents. With the ability to rapidly apply and scale new technologies, the company has built long term partnerships with its clients – helping them emerge as perpetually adaptive enterprises. Many of these relationships have endured into decades and navigated every technology cycle, from mainframes in the 1970s to Artificial Intelligence today.
TCS sponsors 14 of the world’s most prestigious marathons and endurance events, including the TCS New York City Marathon, TCS London Marathon and TCS Sydney Marathon with a focus on promoting health, sustainability, and community empowerment.
TCS generated consolidated revenues of over US$30 billion in the fiscal year ended March 31, 2026. For more information, visit www.tcs.com