The company has also approved a final dividend of Rs 31 per share.
TCS said it has secured three mega deals during the fourth quarter, with the total contract value (TCV) of $12 billion during the reporting period.
“We are pleased to report the third consecutive quarter of sequential growth, supported by three mega deals with a $12 billion TCV, highlighting 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,” said K Krithivasan, CEO and MD, TCS.
Management commentary largely focused on adapting to AI and how the company is positioning itself in an age of uncertainty.
In the fourth quarter, annualised AI revenue crossed $2.3 billion in Q4FY26.
Aarthi Subramanian, COO of TCS, said FY26 marked a pivotal year for the company’s AI adoption. “In Q4, our annualized AI revenues surpassed $2.3 billion, driven by the accelerated deployment of AI solutions,” she added.TCS acknowledged that macro-economic headwinds continue to cloud the outlook, but said it sees sustained customer conviction in technology investments.
Also read: TCS declares Rs 31 per share final dividend, FY26 payout at Rs 39,571 crore
On a sequential basis, revenue grew 5.4%, while the constant currency (CC) stood at 1.2%, which was largely on the expected lines. TCS reported an operating margin of 25.3% in the January-March quarter, up 10 basis points quarter-on-quarter (QoQ).
The company experienced strong deal momentum across new services in enterprise transformation, digital engineering, and cloud modernisation.
“Our investment in HyperVault was a catalyst in forging strategic partnerships with OpenAI, AMD, and ABB, further strengthening our positioning across Infrastructure-to-Intelligence,” TCS said.
Segment-wise, growth was driven by the Europe and UK (ERU) region, which expanded 6.1% sequentially, while the Communication, Banking, and Growth (CBG) segment grew 2.8% in constant currency (CC) terms, indicating resilience in key verticals.
Among geographies, the UK led growth with a 2.4% sequential increase, while North America saw a relatively muted rise of 1.4% in CC terms.
Cash flow generation remained strong, with operating cash flow at 106.7% of net income, highlighting robust execution and healthy cash conversion even amid uneven sectoral demand.
TCS Q4 FY26 Results
TCS closed FY26 with a deal TCV of $40.7 billion, one of the highest-ever, including five mega deals for the year.
The company intensified investments through its Build–Partner–Acquire approach, acquiring Coastal Cloud and List Engage and establishing HyperVault.
“Even as we scaled our investments in AI-led growth opportunities, our margins expanded by 70 basis points, reflecting our strong operational rigor. Our solid cash flow and resilient balance sheet position us to advance strategic priorities, pursue timely investments, and maximize growth,” said CFO Samir Seksaria.
TCS closed FY26 with revenue of Rs 2.67 lakh crore, up 5% YoY.
