MUMBAI, July 9, 2026: Tata Consultancy Services (BSE: 532540, NSE: TCS) reported its consolidated financial results according to IFRS, for the quarter ending June 30, 2026.
Highlights of the Quarter Ended June 30, 2026
* Excludes exceptional item
K Krithivasan, Chief Executive Officer and Managing Director, said “Q1 FY27 reflects continued growth momentum and the strength of our strategic positioning, despite geopolitical and macro-economic headwinds. We delivered a strong order book of $9.5 billion, including a marquee AI-led transformation deal with SKF, while continuing to add clients across key revenue bands and scaling our AI business to a $2.6 billion annualized revenue run rate. As customers accelerate investments in AI, modernization, cybersecurity, sovereign cloud and platform simplification, our strong deal conversion, improving client mining and expanding ecosystem partnerships position TCS well to translate opportunity into sustained growth”.
Aarthi Subramanian, Executive Director - President and Chief Operating Officer, said “Q1 was characterized by strong growth across several services. We won multiple AI-led transformation deals with our dual commitment to AI-led optimization as well as innovation-led outcomes. These wins validate our approach to AI-led efficient ITOps, accelerated Software Engineering and Modernization, AI-first process redesign and implementation of SaaS solutions and Autonomous GBS. We signed strategic partnerships with Anthropic and Mistral expanding our AI ecosystem”.
Samir Seksaria, Chief Financial Officer, said, “In Q1, we rolled out annual wage hikes, strengthened our partnership ecosystem, and targeted investments to enhance long-term competitiveness. We remain focused on building, acquiring, or partnering for AI-led capabilities while maintaining disciplined execution, industry-leading profitability and return ratios”.
Sudeep Kunnumal, Chief HR Officer, said “This quarter, we completed annual salary increments for all associates globally and aligned salary structures with the new India Labour Code requirements. We continue to invest in AI infrastructure, next-generation skill development platforms, to enable our people to be future-ready, while fostering a workplace where every associate feels safe, valued, trusted and empowered to grow”.
Q1 FY27 Segment Highlights
Growth by Domain
Industry |
Composition (%) |
|
Q-o-Q |
Y-o-Y |
||
Q1 FY26 |
Q4 FY26 |
Q1 FY27 |
|
|||
BFSI |
32.0 |
31.6 |
32.1 |
|
1.6 |
2.4 |
Consumer Business |
15.6 |
15.7 |
15.0 |
|
- 4.0 |
- 1.2 |
Life Sciences & Healthcare |
10.2 |
10.4 |
10.3 |
|
- 1.0 |
3.5 |
Manufacturing |
8.7 |
8.8 |
8.7 |
|
- 0.5 |
2.9 |
Technology & Services |
8.4 |
8.4 |
8.5 |
|
1.7 |
3.5 |
Communication & Media |
5.8 |
5.8 |
5.8 |
|
0.3 |
1.4 |
Energy, Resources and Utilities |
5.9 |
6.3 |
6.3 |
|
- 0.7 |
6.9 |
Regional Markets & Others |
13.4 |
13.0 |
13.3 |
|
4.0 |
9.0 |
Total |
100.0 |
100.0 |
100.0 |
|
0.4 |
3.2 |
Growth by Markets
Geography |
Composition (%) |
|
Q-o-Q |
Y-o-Y |
||
Q1 FY26 |
Q4 FY26 |
Q1 FY27 |
|
|||
Americas |
|
|
|
|
|
|
North America |
48.7 |
48.5 |
48.3 |
|
- 0.4 |
2.0 |
Latin America |
1.9 |
1.9 |
2.0 |
|
0.6 |
- 2.1 |
Europe |
|
|
|
|
|
|
UK |
18.0 |
17.2 |
17.2 |
|
0.3 |
- 0.6 |
Continental Europe |
15.0 |
15.6 |
15.4 |
|
- 0.2 |
4.3 |
Asia Pacific |
8.4 |
8.3 |
8.4 |
|
1.4 |
2.5 |
India |
5.8 |
6.0 |
6.2 |
|
7.6 |
22.9 |
MEA |
2.2 |
2.5 |
2.5 |
|
- 1.8 |
7.6 |
Total |
100.0 |
100.0 |
100.0 |
|
0.4 |
3.2 |
Key Highlights for the quarter
Customer Speak
“The next decade of industrial manufacturing will be defined by how deeply companies integrate AI into how they design, produce, and serve. SKF intends to lead that shift. With TCS as our partner, we are not just modernising our technology, we are also building the operational and AI foundations that will set new standards for precision and customer value across our industry. This is a long-term commitment, made between two companies that share a conviction about where industrial manufacturing is heading.”
Rickard Gustafson, CEO, SKF
“Working with TCS marks the next stage of our journey to modernise the technology foundations that underpin our business, and it was important to choose a partner that understands our long-term vision and shares our commitment to people and innovation. TCS brings deep technical expertise, strong transformation capabilities and a collaborative approach that aligns well with our strategy. Together, we will deliver lasting improvements to the technology services and capabilities that support our business and the people who depend on it.”
Caroline Dibbs, Chief Information & Transformation Officer, Europe at Canada Life
"Our ongoing digital transformation at Spurs underpins our wider aims to deepen fan engagement and enhance user experiences across our growing range of digital touchpoints. We are delighted to be able to take a true industry leader in TCS on this exciting journey with us - their expertise in delivering large-scale infrastructure projects with some of the world's biggest brands will be invaluable to us moving forward."
Ryan Norys, Chief Revenue Officer at Tottenham Hotspur
“Our partnership with TCS represents a significant step in advancing our digital ambitions and strengthening our global operations. By modernizing our IT landscape and leveraging AI-driven capabilities, we aim to improve efficiency, enhance user experience and support our growth objectives as we move towards our 2030 vision driving above-market growth, and advancing our strategic priorities.”
Merethe Johansen, CIO at Elopak
"Having established one of Europe’s most advanced CSD infrastructures in Finland, we are pleased to extend our decade-long partnership with TCS to Sweden. This collaboration is a pillar of our 'One Nordic' vision, allowing us to harmonize business and IT practices onto a single, resilient platform. By integrating our regional operations, we are not only enhancing efficiency for our clients but also reinforcing our position as the preferred Nordic CSD, dedicated to the long-term prosperity of the Nordic financial ecosystem."
Hanna Vainio, CEO, Euroclear Sweden and Finland
"This strategic partnership with TCS will enable Nokian Tyres to have a globally unified, agile, and efficient operating model that supports business needs. In addition, it creates a sustainable foundation for the increasing adoption of next-generation technologies such as automation, data-driven solutions and artificial intelligence.”
Timmy McLellan, Chief Information Officer, Nokian Tyres
“Release 1 of the CHESS Project marks a significant milestone in the modernisation of Australia’s critical market infrastructure supporting post-trade clearing and settlement services. With CHESS Release 1 in production, ASX is very proud of the outcomes achieved with TCS as our technology partner having deployed a modern, secure, resilient and scalable solution for the Australian market. Leveraging the expertise of TCS and their experience with markets infrastructure in other jurisdictions has enabled us to confidently put Release 1 into production and we are progressing with Release 2, targeted to go-live 2029.”
Tim Whiteley, Chief Information Officer, ASX
Partner Speak
“We built Claude to be safe, trusted, and helpful, particularly in contexts where accuracy matters most. This partnership deepens our commitment to India, our second-largest market, with TCS bringing Claude to enterprises and professionals across the region and globally, including 50,000 of its employees.”
Dario Amodei, Co-founder and CEO, Anthropic
“TCS’ global scale and contextual industry knowledge make them an ideal partner for Mistral. Together, we are enabling enterprises worldwide to move from experimentation to AI deployment with systems that are open, production-ready and aligned with their strategic and operational requirements.”
Arthur Mensch, Chief Executive Officer and Co-Founder at Mistral
“This strategic partnership between TCS and Siemens Energy India Limited brings together our expertise in energy systems and digital intelligence to enable reliable, low carbon power infrastructure for the next generation of AI-driven data centres.”
Guilherme Mendonca, MD and CEO, Siemens Energy India Limited
“This partnership is a major commercial milestone for Rezolve Ai. TCS brings extraordinary reach, deep enterprise trust, and global execution capability. Together, we are creating a clear pathway to take agentic commerce from platform innovation to enterprise‑scale deployment. We believe, this collaboration will significantly accelerate enterprise adoption of our technology and further strengthen Rezolve Ai’s position as a category leader in AI-powered commerce.”
Daniel M. Wagner, Chief Executive Officer, Rezolve Ai
“TCS is helping customers accelerate AI adoption by establishing the Oracle AI Data Platform Lab and Center of Excellence, which is built on a secure, unified data foundation and integrated AI capabilities. Together, we are enabling customers to turn data into real business outcomes, from actionable insights to intelligent automation—by leveraging Oracle AI Data Platform to simplify, scale, and operationalize AI across the business.”
Arvind Mehra, Head, Alliances & Channels – Technology, Oracle India
Research and Innovation
As on June 30, 2026, the company applied for 9,803 patents, including 207 applied during the quarter, and has been granted 5,670 patents including 170 granted during the quarter.
Above patent portfolio is inclusive of following AI led Inventions: 1,996 patents filed (cumulative) out of which 163 were applied during the quarter and 602 patents granted (cumulative) out of which 29 were granted during the quarter.
Awards and Recognition
IFRS Financial Statements
Consolidated Statements of Comprehensive Income
For the three-month periods ended June 30, 2025, March 31, 2026 and June 30, 2026
(In millions of $, except per share data)
|
Three-month period ended |
Three-month period ended |
Three-month period ended |
Revenue |
7,421 |
7,621 |
7,624 |
Cost of revenue |
4,517 |
4,517 |
4,605 |
Gross margin |
2,904 |
3,104 |
3,019 |
SG & A expenses |
1,089 |
1,177 |
1,193 |
Operating income |
1,815 |
1,927 |
1,826 |
Other income (expense), net |
172 |
52 |
137 |
Income before income taxes |
1,987 |
1,979 |
1,963 |
Income taxes |
487 |
493 |
495 |
Income after income taxes |
1,500 |
1,486 |
1,468 |
Non-controlling interests |
7 |
7 |
8 |
Net income |
1,493 |
1,479 |
1,460 |
Earnings per share in $ |
0.41 |
0.41 |
0.40 |
*Excludes exceptional items
Consolidated Statements of Financial Position
As of March 31, 2026, and June 30, 2026
(In millions of $)
|
As of March 31, 2026 |
As of June 30, 2026 |
Assets |
||
Property and equipment |
1,500 |
1,528 |
Right-of-use Assets |
1,166 |
1,170 |
Intangible assets and Goodwill |
1,211 |
1,202 |
Accounts Receivable |
6,102 |
6,165 |
Unbilled Revenues |
1,918 |
2,015 |
Invested Funds |
5,287 |
5,306 |
Other current assets |
1,360 |
1,375 |
Other non-current assets |
956 |
922 |
Total Assets |
19,500 |
19,683 |
Liabilities and Shareholders' Equity |
||
Shareholders' Funds |
11,559 |
11,806 |
Current liabilities |
6,439 |
6,449 |
Non-current liabilities |
1,369 |
1,320 |
Non-controlling interests |
133 |
108 |
Total Liabilities |
18,931 |
19,502 |
Tata Consultancy Services (TCS) (BSE: 532540, NSE: TCS) is a digital transformation and technology partner of choice for industry-leading organizations worldwide. Since its inception in 1968, TCS has upheld the highest standards of innovation, engineering excellence and customer service.
Rooted in the heritage of the Tata Group, TCS is focused on creating long term value for its clients, its investors, its employees, and the community at large. With a highly skilled workforce spread across 55 countries and 202 service delivery centers across the world, the company has been recognized as a top employer in six continents. With the ability to rapidly apply and scale new technologies, the company has built long term partnerships with its clients – helping them emerge as perpetually adaptive enterprises. Many of these relationships have endured into decades and navigated every technology cycle, from mainframes in the 1970s to Artificial Intelligence today.
TCS sponsors 14 of the world’s most prestigious marathons and endurance events, including the TCS New York City Marathon, TCS London Marathon and TCS Sydney Marathon with a focus on promoting health, sustainability, and community empowerment.
TCS generated consolidated revenues of over US$30 billion in the fiscal year ended March 31, 2026. For more information, visit www.tcs.com.