TCS Q4 results 2026: Key takeaways | Quarterly earnings highlights

Tata Consultancy Services Ltd (TCS) on Thursday reported strong deal momentum for FY26, with total contract value (TCV) of $40.7 billion for the full year and $12 billion for Q4, among the highest-ever recorded by the IT major. The company added that it signed three mega deals in the quarter and five mega deals during the financial year.

K Krithivasan, Chief Executive Officer and Managing Director, said, "We are pleased to report the third consecutive quarter of sequential growth, supported by three mega deals and a $12 billion TCV, underscoring the strength of our five pillar strategy and our AI led positioning across services. It is equally encouraging that this momentum was broad based across major markets and most industries. While the macro-economic headwinds continue, we see sustained customer conviction in technology investments, which positions us well for the opportunities ahead."

Here are the key highlights:

* Q4 FY26 revenue at Rs 70,698 crore; growth of +5.4 per cent QoQ and +1.2 per cent QoQ in constant currency (CC)

* FY26 revenue at Rs 2,67,021 crore; +4.6 per cent YoY, -2.4 per cent YoY in CC

* Total contract value (TCV): $12 billion in Q4; $40.7 billion in FY26; 3 mega deals in Q4 and 5 mega deals in FY26

* Annualised AI revenue crosses $2.3 billion in Q4 FY26

* FY26 operating margin (excluding one-offs) at 25 per cent, up 70 basis points (bps) YoY – highest in four years

* FY26 net margin at 19.8 per cent, up 80 bps YoY – highest in four years

* Client metrics: $100M+ clients up by 2 YoY to 66; $50M+ clients up by 9 YoY to 139; $1M+ clients up by 65 YoY to 1,397

* Employee headcount: 5,84,519

* Talent development: 69 million learning hours (+23 per cent YoY); 5.2 million competencies acquired; 270,000+ employees with higher AI/ML proficiency

* Final dividend (proposed): Rs 31 per share, subject to shareholder approval at the AGM

* FY26 shareholder payout: Rs 39,571 crore through dividends

* Cash conversion: Operating cash flow at 106.7 per cent of net income

The quarterly results were announced post-market hours. Earlier in the day, TCS shares rose 1.09 per cent to close at Rs 2,587.75. At this level, the stock has slipped 15.49 per cent over the last six months.

Sebi-registered analyst Mitesh Panchal noted that the drop in stock price can be viewed as an accumulation opportunity. "We have put in a target of close to Rs 3,800 to 4,000 for TCS. From the bottom formation viewpoint, one can go ahead with TCS," he told Business Today.