Tata Consultancy Services Ltd (TCS) for the first quarter ended June 30, 2026 reported 4.6% growth in consolidated net profit at ₹13,349 crore as compared with ₹12,760 crore in the same period last year.
The company’s consolidated revenue for the period at ₹72,275 crore grew 14% YoY.
Annualized AI revenue at US$ 2.6 billion in Q1FY27, grew 13.6% QoQ.
Operating margin was at 24% and net margin was at 19.2%.
In the first quarter the company had Total Contract Value (TCV) of US$ 9.5 billion.
Workforce strength at the end of the quarter was 593,798 as compared with 613,069 in the same period last year. LTM Attrition (IT Services) was 13.6%, the company said in a filing. During the quarter the company had added 9,279 employees.
The board has approved an interim dividend of ₹12 per share. Record date is 15 July 2026 and Payment date is 31 July 2026.
K. Krithivasan, chief executive officer and managing director, TCS said “Q1 FY27 reflects continued growth momentum and the strength of our strategic positioning, despite geopolitical and macro-economic headwinds. We delivered a strong order book of $9.5 billion, including a marquee AI-led transformation deal with SKF, while continuing to add clients across key revenue bands and scaling our AI business to a $2.6 billion annualized revenue run rate.”
“As customers accelerate investments in AI, modernization, cybersecurity, sovereign cloud and platform simplification, our strong deal conversion, improving client mining and expanding ecosystem partnerships position TCS well to translate opportunity into sustained growth,” he said.
Aarthi Subramanian, executive director, president and chief operating officer, said “Q1 was characterized by strong growth across several services. We won multiple AI-led transformation deals with our dual commitment to AI-led optimization as well as innovation-led outcomes.”
“These wins validate our approach to AI-led efficient ITOps, accelerated Software Engineering and Modernization, AI-first process redesign and implementation of SaaS solutions and Autonomous GBS. We signed strategic partnerships with Anthropic and Mistral expanding our AI ecosystem,” she said.
Samir Seksaria, chief financial officer, said, “In Q1, we rolled out annual wage hikes, strengthened our partnership ecosystem, and targeted investments to enhance long-term competitiveness. We remain focused on building, acquiring, or partnering for AI-led capabilities while maintaining disciplined execution, industry-leading profitability and return ratios”.
Sudeep Kunnumal, chief HR officer, said “This quarter, we completed annual salary increments for all associates globally and aligned salary structures with the new India Labour Code requirements. We continue to invest in AI infrastructure, next-generation skill development platforms, to enable our people to be future- ready, while fostering a workplace where every associate feels safe, valued, trusted and empowered to grow.”
Region wise North America which constitutes 48.7% of the business grew 2% YoY, Latin America degrew 2.1%, U.K. which constitutes 18% of the business grew 0.6%, Continental Europe grew 4.3% YoY, Asia Pacific up 2.5% YoY, India which constitutes 5.8% of the business grew 22.9% YoY and MEA grew 7.6%.
Segment wise BFSI grew 2.4% YoY, consumer business was down 1.2%, life science & healthcare grew 3.5%, manufacturing up 2.9%, technology services up 3.5%, communications & media up 1.4%, energy resources & utilities grew 6.9% and regional markets & others grew 9% YoY.
Commenting on the result Shubham Rathore, principal analyst, Gartner said, “TCS’s resilient first-quarter performance, featuring an 8.5% year-over-year growth in net income to ₹13,849 crore, showcases the firm’s capacity to maintain profitability through disciplined execution.”
“This strong financial posture is largely supported by sustained enterprise investments in artificial intelligence, correlating directly with Gartner data predicting total global AI spending will surge by 47% to reach $2.6 trillion in 2026. TCS is proactively capitalizing on this technology shift, evidenced by its $800 million intelligent digital core redesign deal with SKF and its strategic Mistral Forge alliance.,” he said.
While Indian IT firms continue to navigate a volatile macroeconomic climate characterized by cautious client spending, TCS’s diversified portfolio and prioritized investments in AI-first operational models equip it exceptionally well to capture complex transformation engagements going forward,” he added.
Published - July 09, 2026 09:39 pm IST