Tata Consultancy Services (TCS) has reported fourth-quarter results for FY26 that exceeded expectations, driven primarily by stronger performance in its international operations.
Despite an overall decline in full-year revenue, largely attributed to a slowdown in its India business following the completion of the BSNL deal in FY25, the company’s overseas segment showed resilience. International revenue in US dollar terms rose by 2.4% over the year. With an order book valued at around $40bn, including five major deals, TCS expects this momentum to continue.
The company said it has limited exposure to sectors and regions affected by ongoing geopolitical tensions, including the travel industry and the Middle East, reducing potential risks from the conflict.
Quarterly revenue rose 1.5% compared with the previous quarter in dollar terms, and 2.1% year-on-year. In constant currency, growth stood at 1.2% quarter-on-quarter and 2.5% annually. Measured in Indian rupees, revenue increased 5.4% sequentially and 9.6% from a year earlier.
Regionally, North America led growth with a 2.5% rise year-on-year in constant currency, while Latin America declined by 2.9%. Among sectors, energy saw the strongest growth at 7.3%, followed by life sciences, manufacturing, and technology. Communications and regional markets, however, registered declines.
TCS recorded total contract value (TCV) of $12bn for the quarter, up 29% sequentially, though slightly lower year-on-year. Artificial intelligence services continued to expand, contributing annualised revenue of $2.3bn.
Operating margins improved modestly to 25.3%, supported by better pricing and currency benefits. However, increased investments and upcoming salary hikes may weigh on margins in FY27.
