Tata Consultancy Services Ltd.TCS: Triple Sequential Growth & 4-Year High Margins

Tata Consultancy Services delivered a strong Q4 FY26, reporting ₹70,698 crore in revenue, up 5.4% QoQ in INR terms, with constant-currency sequential growth of 1.2% — the third consecutive quarter of improvement across major geographies.

The company’s Q4 TCV of $12 billion, including three mega deals with Marks & Spencer, a leading UK telecom operator, and a major US healthcare retailer, sets up robust FY27 revenue conversion. For full-year FY26, operating margin reached 25% — a four-year high with a 70 basis point year-on-year expansion — while Q4 net margin of 19.4% drove EPS growth of 12.2% YoY. Annualised AI services revenue surpassed $2.3 billion, driven by accelerating enterprise AI deployments, and every revenue band recorded client additions for the first time in approximately two years.

Management expressed strong confidence in FY27, targeting 26% operating margin on a longer-term basis despite an immediate 150-200 basis points wage-hike headwind in Q1. HyperVault, TCS’s data centre business, is advancing to commercial structuring with OpenAI, AMD, and ABB, positioning the company as a full-stack AI player from infrastructure to intelligence.