TCS Q4 FY26 Results: Revenue ₹70,698cr, Margin 25.3%

Results at a glance

Tata Consultancy Services (TCS) reported its consolidated results for the quarter and full year ended March 31, 2026, highlighting a strong finish to FY26. The company said Q4 marked its third consecutive quarter of sequential growth, even as management pointed to geopolitical conflicts and macroeconomic uncertainty in key markets. In rupee terms, quarterly revenue and profit grew sharply on a sequential basis. But on a full-year basis, the constant-currency picture remained weak, with revenue declining 2.4%.

Q4 FY26: revenue up 5.4% QoQ

TCS reported Q4 FY26 revenue of ₹70,698 crore, a 5.4% quarter-on-quarter increase. In dollar terms, revenue was $1.621 billion, up 1.5% QoQ. The company said constant-currency sequential growth was 1.2%. Management attributed the quarter’s momentum to broad-based improvement across major markets.

Full-year FY26: INR growth, but constant-currency decline

For FY26, TCS reported revenue of ₹2,67,021 crore, reflecting 4.6% year-on-year growth in INR terms. In dollar terms, FY26 revenue was $10.017 billion, a 0.5% year-on-year decline. In constant currency, revenue fell 2.4% for the full year. The split between INR growth and constant-currency decline indicates that currency movement supported reported numbers, while underlying demand growth remained under pressure.

Margins: Q4 operating margin at 25.3%

TCS reported an operating margin of 25.3% in Q4 FY26, a 10 basis point sequential improvement. For the full year, operating margin stood at 25%, with management calling it a four-year high and an expansion of 70 basis points year-on-year. The company said realizations improved due to continued focus on value-led delivery, and currency provided a translation tailwind during the quarter. It also said it reinvested part of the tailwinds into strengthening capabilities and growth engines.

Profit, net margin, and cash metrics

Q4 FY26 net profit came in at ₹13,718 crore, with profit up 29% QoQ and 12% YoY (as stated in the provided results summary). Net margin for the quarter was 19.4%, while FY26 net margin was 19.8%. TCS reported cash conversion of 106.7% of net income in Q4, indicating operating cash flows exceeded reported profits for the period. Accounts receivable stood at 74 DSO in dollar terms for Q4, down two days sequentially.

Order book strength: $12 billion TCV in Q4

Management highlighted strong deal momentum, reporting $12 billion of total contract value (TCV) in Q4, including three mega deals. For FY26, TCS reported $10.7 billion in TCV with five mega deals during the year. The company positioned the order book as a key support for visibility, even as constant-currency revenue declined on a full-year basis.

AI revenue milestone and capability investments

TCS disclosed that its annualized AI revenue crossed $1.3 billion in Q4 FY26. On workforce and capability building, the company reported an employee headcount of 584,519. It also reported 69 million learning hours (up 23% YoY), 5.2 million competencies acquired, and 270,000+ employees with higher proficiency in AI/ML.

Segment and market performance snapshots

The company’s segment data showed varied momentum across verticals in Q4 FY26.

In geography, the provided table showed UK up 2.4% QoQ in CC and North America up 1.4% QoQ in CC for Q4. It also showed India at 6.0% of Q4 revenue mix and MEA at 2.5%, with total Q4 constant-currency growth of 1.2%.

Dividend and shareholder payout

TCS recommended a final dividend of ₹31 per share, subject to shareholder approval at the Annual General Meeting. The company said total dividend for the year was ₹110 per share. It also reported FY26 shareholder payout of ₹39,571 crore in dividends.

Management commentary and FY27 seasonality view

CEO and MD K Krithivasan said TCS delivered a third consecutive quarter of sequential growth, supported by mega deals and a $12 billion quarterly TCV. On outlook, the provided podcast transcript noted that management discussed a “highly positive” view for the coming year and expects a return to typical Q1 and Q2 seasonality, which usually implies stronger sequential growth in the first half. Separately, management reiterated focus on optimizing margins, robust cash conversion, and strengthening the balance sheet, while continuing investments under the “Build, Partner, Acquire” framework.

Market reaction

Following the earnings announcement, the provided summary noted TCS shares rose 1.16%, indicating a positive immediate response to the quarter’s profit growth, margin trajectory, and deal commentary.

Key numbers table

What investors will track next

The quarter underscored a contrast that investors will likely keep monitoring: sequential momentum and strong deal wins versus weak full-year constant-currency revenue. Margin levels stayed elevated, supported by delivery discipline and currency, while TCS indicated it will continue investing to maximize growth. The next set of updates investors will watch includes how Q1 FY27 seasonality plays out, the pace of conversion from the FY26 order book, and whether constant-currency revenue returns to positive territory.