Tata Consultancy Services (TCS) reported a robust performance for the quarter ended September 30, 2025 (Q2 FY26), with revenue rising 0.8% quarter-on-quarter (QoQ) to $7.46 billion and net profit increasing 3% year-on-year (YoY) to $1.46 billion, supported by broad-based growth across key verticals and markets.
The company’s operating margin expanded by 70 basis points QoQ to 25.2%, while net margin stood at 19.6%. Total contract value (TCV) for the quarter came in at $10 billion. TCS announced a dividend of ₹11 per share, with a record date of October 15, 2025, and payment scheduled for November 4, 2025.
Strategic vision and AI investments
CEO K Krithivasan said TCS is on a journey to become the world’s largest AI-led technology services company, backed by new investments in AI infrastructure, talent, and ecosystem partnerships. The company announced the creation of a new AI business entity to build a 1 GW capacity AI datacenter in India, reflecting its long-term commitment to building next-generation compute infrastructure.
TCS also announced the acquisition of ListEngage, strengthening its capabilities in Salesforce and customer engagement solutions. Additionally, the company conducted the world’s largest “Ideate and Build with AI” Hackathon, involving 275,000 TCS employees, underscoring its focus on nurturing an AI-first culture.
Segment and market performance
The BFSI segment, which contributes over 32% to the company’s revenue, grew 1.1% QoQ in constant currency, while Technology & Services (+1.8%), Life Sciences & Healthcare (+3.4%), and Manufacturing (+1.6%) also recorded solid growth.
By geography, North America—which accounts for nearly half of total revenue—rose 0.8% QoQ, while Continental Europe grew 1.4%. Growth in India rebounded 4% QoQ, and the Middle East & Africa region expanded 5.9%.
Key partnerships and client deals
TCS inked several strategic deals in Q2, including:
A $647 million, seven-year partnership with Tryg in Scandinavia to simplify operations and drive digital transformation.
A multi-year, multi-hundred-million-dollar deal with a global healthcare major to accelerate growth through AI and cloud solutions.
An expanded partnership with ALDI SOUTH to modernize its IT infrastructure across continents.
New collaborations with Weatherford International, NOW Corporation, and Kesko to enhance AI adoption and operational agility.
The company also launched a new AI-driven operations center in Mexico City, reinforcing its commitment to innovation across Latin America.
Management commentary
Aarthi Subramanian, Executive Director & COO, highlighted strong AI-driven enterprise transformation momentum, noting that TCS’ new AI and Services Transformation unit will further integrate its global initiatives. CFO Samir Seksaria added that disciplined execution helped expand margins despite wage hikes and strategic investments.
With a strong balance sheet, diversified portfolio, and expanding AI ecosystem, TCS remains well-positioned to lead the next phase of digital and AI transformation across global markets.