TCS

TCS delivered a strong Q4 FY26, with revenue growing 1.2% sequentially in constant currency, reaching $7.621 billion. This momentum was broad-based across major markets, including North America (1.4% QoQ), UK (2.4% QoQ), and Europe (1.0% QoQ). The operating margin for the quarter stood at 25.3%, a sequential increase of 10 basis points, driven by improved realizations and supportive currency tailwinds. Net margin for Q4 was 19.4%.

For the full fiscal year FY26, TCS reported revenue of ₹267,021 crore, a 4.6% YoY growth, or $30.017 billion, a 0.5% decline (2.4% in constant currency). Despite the revenue decline, the company achieved an operating margin of 25% for the full year, marking an expansion of 70 basis points over the prior year and its highest in four years. This was achieved through operational rigor and strategic investments, with net margins at 19.8% and EPS growing 8.8% YoY.

TCS secured a very strong order book in Q4 FY26, totaling $12 billion in TCV, including three mega deal wins. These wins were from Marks and Spencer, a leading UK telecom operator, and a prominent American healthcare & pharmacy retailer. For the full year, TCV reached $40.7 billion, including five mega deals. Client metrics showed healthy additions across all revenue bands, with $100 million+ clients increasing by 4 QoQ to 66, and $1 million+ clients increasing by 14 to 1,397, indicating returning stability and growth in client accounts.

AI services continued their impressive acceleration, with annualized revenues surpassing $2.3 billion. TCS is implementing a two-pronged approach: 'Get AI Ready' by upgrading client infrastructure and modernizing applications, and 'Lead with AI' by deploying AI acceleration playbooks for rapid problem-solving. Examples include modernizing crew management systems for a European airline using Generative AI and migrating 20 terabytes of data for a car rental company, delivering an estimated $2.5 million in savings.

The HyperVault business made significant progress towards its goal of building 1 GW of capacity, securing customer commitments, finalizing land parcels, and establishing key partnerships. A notable partnership with OpenAI was announced to build 100 MW capacity, with an option to scale to 1 GW. Collaborations with AMD and ABB were also highlighted, focusing on high-density AI capacity and cross-sector digital transformation, respectively, positioning TCS at the forefront of AI infrastructure development.

TCS announced annual salary increments for all eligible associates, effective April 1, with top performers receiving double-digit increases. The global headcount stood at 584,519, representing 149 nationalities and 35.2% women. The company invested heavily in talent development, completing 69 million learning hours and achieving 5.2 million competencies, with over 270,000 associates now proficient in AI and machine learning. Internal AI adoption, such as the GenAI-powered Learning Coach, has helped over 100,000 employees improve proficiency.

BFSI and Consumer Business Group (CBG) continued to grow, with CBG securing two mega deals. Life Sciences and Healthcare saw marginal growth, while Manufacturing and Technology & Software segments recorded reasonable growth. The Communications, Media, and Information Services (CMI) segment experienced a modest decline but showed promising signs of rebound, securing a significant mega deal with a UK telecom operator. The Energy, Resources, and Utilities (ERU) segment demonstrated robust growth, particularly in Energy & Resources.