Robust Order Book and Operational Resilience mark TCS’ Q1
Key takeaways from Q1 FY26
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Q1 FY25-26
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AI, Cloud, Cyber Security and advanced digital technology solutions are leading growth at Tata Consultancy Services. In Q1FY26 TCS has observed significant momentum across the enterprise ecosystem with increased investment in Artificial Intelligence. This includes investments in infrastructure, data platform solutions, AI agents, and domain-specific business applications of AI.
AI and GenAI Demand Strengthens
Clients are moving from experimentation to scaled deployment of AI and GenAI solutions. TCS is seeing increased demand for industry-specific AI applications, legacy modernization using GenAI, and platform-led delivery models. Agentic AI is now part of active client discussions and early-stage implementations.
Large-Scale AI Capability Across the Workforce
TCS has trained over 114,000 employees in advanced AI skills. AI is being integrated across delivery, engineering, and business process services, positioning the company to support large-scale transformation programs.
AI-Led Services Driving Growth
Service lines such as AI, data, cybersecurity, and digital engineering saw strong growth in Q1. These are now core components of client transformation agendas and a key part of TCS’s go-to-market approach.
Total Contract Value at $9.4 Billion
TCV for the quarter stood at $9.4 billion, a 13.2% increase year-on-year. Despite ongoing delays in decision-making, the deal pipeline remains strong across geographies and sectors, with momentum in cost-efficiency programs and AI-led projects.
Stable Financials and Headcount Addition
Operating margin improved to 24.5%, and net income reached ₹12,760 crore for the quarter. The company added 6,071 employees year on year, bringing total headcount to 613,069.
Highlights of the Quarter Ended June 30, 2025
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Highlights of the Quarter Ended June 30, 2025
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