Announced strategic deal wins
MUMBAI, October 8, 2026: Tata Consultancy Services (BSE: 532540, NSE: TCS) reported its consolidated financial results according to Ind AS and IFRS, for the quarter ending September 30, 2026.
Highlights of the Quarter Ended September 30, 2026
K Krithivasan, Chief Executive Officer and Managing Director, said “We are pleased with the broad-based growth in all our international markets and most industry segments. This quarter we announced two unique deals with Porsche and Best Buy which represent a new category of transformation partnerships. Together with our clients, we are building repeatable value platforms that will industrialize AI at scale.“
Aarthi Subramanian, Executive Director - President and Chief Operating Officer, said “AI momentum remained strong, with annualized AI revenues now exceeding $3 billion. Demand for delivering business outcomes with AI-native solutions, AI-led transformation of enterprise systems and autonomous GBS, continues to accelerate. Cybersecurity remains a top priority as customers sharpen their focus on resilience and recovery. TCS’ Human+AI Services Autonomy model for AMS earned top rankings from customers, underscoring the strength of our differentiated capabilities."
Samir Seksaria, Chief Financial Officer, said, “We continued to strengthen our capabilities through acquisitions, partnerships and investments in niche talent. In addition, we maintained strong cash conversion and industry-leading profitability, along with our focus on creating sustainable long-term value for all stakeholders.”
Sudeep Kunnumal, Chief HR Officer, said “We continue to build a future-ready workforce through upskilling our employees and hiring top talent. Investments in learning and critical skills drove a 17% sequential increase in learning hours to 17.1 million. This quarter our employee base reached over 598,000, while attrition remained stable at 13.3%.”
Q2 FY27 Segment Highlights
Growth by Domain
Composition (%) |
|
Q-o-Q |
Y-o-Y |
|||
Q2 FY26 |
Q1 FY27 |
Q2 FY27 |
|
|||
BFSI |
32.2 |
32.1 |
32.8 |
|
2.5 |
3.9 |
Consumer Business |
15.3 |
15.0 |
14.9 |
|
- 0.7 |
- 1.0 |
Life Sciences & Healthcare |
10.5 |
10.3 |
10.3 |
|
0.3 |
0.5 |
Manufacturing |
8.8 |
8.7 |
9.0 |
|
3.1 |
4.2 |
Technology & Services |
8.5 |
8.5 |
8.6 |
|
3.1 |
4.8 |
Communication & Media |
5.9 |
5.8 |
5.8 |
|
0.1 |
0.5 |
Energy, Resources and Utilities |
5.9 |
6.3 |
6.2 |
|
- 0.5 |
5.7 |
Regional Markets & Others |
12.9 |
13.3 |
12.4 |
|
- 5.8 |
3.6 |
Total |
100.0 |
100.0 |
100.0 |
|
0.5 |
2.8 |
Growth by Markets
Composition (%) |
|
Q-o-Q |
Y-o-Y |
|||
Q2 FY26 |
Q1 FY27 |
Q2 FY27 |
|
|||
Americas |
|
|
|
|
|
|
North America |
48.8 |
48.3 |
48.3 |
|
0.4 |
1.5 |
Latin America |
1.9 |
2.0 |
2.1 |
|
4.3 |
1.7 |
Europe |
|
|
|
|
|
|
UK |
17.5 |
17.2 |
17.8 |
|
3.5 |
4.5 |
Continental Europe |
15.3 |
15.4 |
15.2 |
|
0.4 |
3.3 |
Asia Pacific |
8.3 |
8.4 |
8.6 |
|
2.0 |
4.1 |
India |
5.8 |
6.2 |
5.5 |
|
- 10.3 |
6.0 |
MEA |
2.4 |
2.5 |
2.5 |
|
0.4 |
2.0 |
Total |
100.0 |
100.0 |
100.0 |
|
0.5 |
2.8 |
Key Highlights for the quarter
Customer Speak
“Porsche is taking another important step in its strategy to focus resolutely on its core business with the transfer of MHP to Tata Consultancy Services. At the same time, we are gaining a strategic partner in TCS. By combining Porsche’s automotive expertise with TCS’ digital technology and AI capabilities, we will further strengthen our innovative power, increase efficiency, and boost our competitiveness in an increasingly data and software-driven world of mobility.”
Dr. Michael Leiters, CEO, Porsche AG
“Our India team has played an important role in advancing Best Buy’s priorities, and we wanted a partner that understood both the business context and the value of this team. TCS brings that understanding, along with the technology and AI capabilities to build on the team’s strengths and meaningful opportunities for employees to continue learning and growing in their careers.”
Ahrey Smith, Vice President of Technology Strategy and Transformation, Best Buy
“With the combination of our world-class Accelerator Operating System and TCS as our trusted transformation partner, we continue to optimize our end-to-end operations across the enterprise while strengthening our integration of AI and advanced digital capabilities.”
Peter Kropik, Chief Digital Officer, Honeywell Technologies
“A modern, resilient and efficient technology platform is key to facilitating our business strategy. By partnering with TCS, we are strengthening our technology capabilities and creating the foundation for the next stage of our transformation journey. TCS brings extensive experience in financial and cloud services.”
Dr Christian Ricken, CEO, Aareal Bank
"Building on DGCX's recent momentum, including strong trading volumes in 2025 and the launch of innovative products such as our Gold Spot T+0 Contract, we are advancing our infrastructure to ensure our members benefit from the risk management tools they need to trade with confidence. Our partnership with Tata Consultancy Services will build the technology foundation for the next stage of our growth, strengthening our offering across energy, currencies, equities, and precious metals, while giving us greater capacity to develop and bring new products to market. Dubai is already one of the world's major centres for commodities and capital flows, and we will continue to build and enhance our market infrastructure to match that position, while also connecting more regional and international participants with the products, technology, and connectivity needed to access global opportunities."
Ahmed Bin Sulayem, Chairman and Chief Executive Officer, DGCX
Partner Speak
“Physical AI is moving manufacturing from digital insight to autonomous real-world action. Through our partnership with TCS, we are bringing Gemini’s multimodal reasoning to the factory floor, enabling robots and systems to operate safely and intelligently in complex industrial environments.”
Kevin Ichhpurani, President, Global Partner Ecosystem, Google Cloud
“As enterprises push to operationalize AI across physical operations, they require specialized infrastructure to bridge the gap between simulation and real-world deployment. Through this collaboration, the TCS Industrial Autonomy & Engineering Lab leverages the full stack NVIDIA AI platform to offer customers a scalable pathway for validating and implementing their next-generation industrial solutions.”
Alvin DaCosta, Vice President, AI Consulting Partners organization, NVIDIA
“As artificial intelligence reshapes how organizations compete and create value, unlocking its full potential depends on giving businesses the right environment to adopt and apply AI with confidence. The Gemini Experience Center in Mexico is a powerful example of how our partner ecosystem is helping turn that vision into reality.”
Javier Carrique, Head of Partners & Alliances for Latin America, Google Cloud
“UK businesses are looking for partners who understand their market, their customers, and the pressure to modernise quickly. The challenge for many organisations is not ambition, it is execution: making the right technology choices, integrating them properly and turning investment into measurable impact. We are pleased to welcome TCS to our growing ecosystem of strategic partners, helping Vodafone Business deliver the services, expertise and digital experiences customers need to move faster, reduce complexity and grow with confidence.”
Nick Gliddon, Business Director, VodafoneThree
“Together with TCS, we are seeing how differentiated industry solutions built with Gemini are helping customers realize business value faster. The launch of the Gemini Experience Center in Kolkata marks a crucial step in accelerating agentic AI adoption, empowering consumer businesses to co-create, test, and scale next-generation innovations.”
Shivir Chordia, Director of Partnerships, India, Google Cloud
Research and Innovation
As of September 30, 2026, the company applied for 10,044 patents, including 241 applied during the quarter, and has been granted 5,885 patents including 215 granted during the quarter.
The above patent portfolio is inclusive of following AI led Inventions: 2,176 patents filed (cumulative) out of which 180 were applied during the quarter and 649 patents granted (cumulative) out of which 47 were granted during the quarter.
Awards and Recognition
IFRS Financial Statements
Consolidated Statements of Comprehensive Income
For the three-month periods ended Sep 30, 2025, June 30, 2026 and Sep 30, 2026
(In millions of $, except per share data)
|
Three-month period ended |
Three-month period ended |
Three-month period ended |
Revenue |
7,466 |
7,624 |
7,642 |
Cost of revenue |
4,512 |
4,605 |
4,643 |
Gross margin |
2,954 |
3,019 |
2,999 |
SG & A expenses |
1,075 |
1,193 |
1,166 |
Operating income |
1,879 |
1,826 |
1,833 |
Other income (expense), net |
73 |
137 |
112 |
Income before income taxes |
1,952 |
1,963 |
1,945 |
Income taxes |
482 |
495 |
490 |
Income after income taxes |
1,470 |
1,468 |
1,455 |
Non-controlling interests |
6 |
8 |
5 |
Net income |
1,464 |
1,460 |
1,450 |
Earnings per share in $ |
0.40 |
0.40 |
0.40 |
*Excludes exceptional items
Consolidated Statements of Financial Position
As of March 31, 2026, and Sep 30, 2026
(In millions of $)
|
As of March 31, 2026 |
As of Sep 30, 2026 |
Assets |
||
Property and equipment |
1,500 |
1,533 |
Right-of-use Assets |
1,166 |
1,219 |
Intangible assets and Goodwill |
1,211 |
1,197 |
Accounts Receivable |
6,102 |
6,124 |
Unbilled Revenues |
1,918 |
2,048 |
Invested Funds |
5,287 |
5,980 |
Other current assets |
1,360 |
1,108 |
Other non-current assets |
956 |
908 |
Total Assets |
19,500 |
20,117 |
Liabilities and Shareholders' Equity |
||
Shareholders' Funds |
11,559 |
12,628 |
Current liabilities |
6,439 |
6,036 |
Non-current liabilities |
1,369 |
1,346 |
Non-controlling interests |
133 |
107 |
Total Liabilities |
19,500 |
20,117 |
Tata Consultancy Services (BSE: 532540, NSE: TCS) is the 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.
It has set an aspiration to become the world's largest AI-led technology services company and is enabling its clients to transform themselves across the full AI stack, from infrastructure to intelligence.
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 56 countries and 194 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. 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, Tata Mumbai 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