TCS Q2 results: Net profit hits $1.45 billion, revenue rises to $7.64 billion

DBT Bureau

Pune, 8 Oct 2026

Tata Consultancy Services 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

• Q2 Revenue at $7,642 Mn; Growth +0.2% QoQ, +2.4% YoY in USD, +0.5% QoQ in CC
  • International Revenue grows 1.2% QoQ in Constant Currency
  • BFSI (+2.5% QoQ CC), Manufacturing (+3.1% QoQ CC) and Technology & Services (+3.1% QoQ CC) led growth
  • Annualized AI Revenue at US$ 3.1 billion in Q2FY27, crosses 10% of Revenue
• Q2 Total Contract Value (TCV): US$ 9.6 billion
• Operating Margin at 24.0%
• Net Profit at $1,450 Mn | Net Margin at 19.0%
• Net Cash from Operations at $1.48 Bn i.e. 102.2% of Net Income
• Workforce strength: 598,056; LTM Attrition (IT Services): 13.3%
• Dividend per share: ₹12 per share| Record date 14-Oct-2026 | Payment date 30-Oct-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

Growth by Markets

Key Highlights for the quarter

• Announced a five-year strategic partnership with Porsche AG. As part of the deal, TCS will establish a dedicated AI Mobility Centre of Excellence for Porsche to drive innovation across manufacturing, engineering, operations and customer experience. TCS, through its subsidiary, will acquire 100% of MHP Management- und IT-Beratung GmbH (MHP), Porsche’s Germany-based management and IT consulting subsidiary. The proposed partnership and acquisition remain subject to regulatory approvals.
• Announced an agreement to transition Best Buy’s Global Capability Center (GCC) in India to TCS, combining the GCC’s retail and enterprise knowledge with TCS’s technology, engineering, AI and global delivery capabilities. The partnership will leverage TCS’ Global Value & Innovation Centres framework to redesign workflows, develop AI-powered solutions and transform the GCC into an AI Capability Center (AICC).
• Selected by Honeywell Technologies as its global end-to-end SAP S/4HANA business transformation partner to establish a future-ready digital core and simplify & standardize enterprise operations in alignment with its world class Accelerator Operating System. Leveraging TCS Crystallus™ and RISE with SAP, TCS will standardize processes, and modernize the application landscape to enable greater operational visibility, support faster decision-making, and enhance the customer experience, while providing a scalable foundation for continued enterprise automation and AI initiatives.
• Announced a long-term strategic partnership with Aareal Bank, a leading international property specialist, for providing end-to-end support to its infrastructure landscape, including data centre operations, cloud platforms, workplace services, cybersecurity, and infrastructure management services. Leveraging its AI-led delivery model, intelligent automation capabilities, and deep financial services expertise, TCS will help simplify technology operations, improve service quality, enhance security, and create a more agile and scalable technology environment aligned with the bank’s long-term strategic objectives.
• Strategic partnership with Vodafone Business, the enterprise arm of VodafoneThree — the United Kingdom’s largest mobile operator. This synergy will help customers modernise technology, accelerate digital adoption, reduce complexity, and scale to achieve stronger business outcomes and customer experience.
• Launched the TCS Industrial Autonomy & Engineering Lab Lights-Out Factory, at its Sahyadri Park campus in Pune. As India’s maiden lights-out factory lab, this facility will simulate how self-optimising factories can automate operations using the TCS Human+AI Service Autonomy Model. It brings together technologies such as digital twins, robotics, industrial AI, factory control systems and real-time operational intelligence and seamlessly combines them for live manufacturing environments.
• Launched TCS Autonomous Engineering Lab Powered by NVIDIA at its Global Axis campus in Bengaluru.  The new facility will serve as a physical AI hub to accelerate the development and real-world deployment of AI-led solutions across mobility and manufacturing using NVIDIA AI Infrastructure.
• TCS and Google Cloud have set up a new Gemini Experience Center (GEC) in Mexico City, TCS’ second in Latin America and the ninth worldwide. The new facility will empower organizations in the region with advanced AI capabilities and help accelerate the development of solutions that drive innovation, productivity, and data-driven decision-making. We also launched the Consumer Business Group (CBG) Gemini Experience Center (GEC) in Kolkata, India. The center will showcase AI-led innovations tailored for consumer business needs and built with Google Cloud and Google’s Gemini models.
• Launched a 4,500-square-feet AI-native TCS Interactive Creative Engineering Studio in London, which will serve as the hub for creative, industry, and engineering teams to collaborate with clients and brands to unlock new revenue growth, market expansion, and operational efficiency.
• Launched TCS ADD^TM AgentHub, a role-based, enterprise-ready, and trusted AI platform that enables the use of agentic AI in drug development at scale. This new agentic AI workforce transforms clinical trials and pharmacovigilance services while maintaining regulatory and audit requirements.
• Partnered with the Dubai Gold & Commodities Exchange (DGCX) to modernise and future-proof its market infrastructure through a next-generation integrated trading, clearing, and surveillance solution. The transformation programme will support future growth, improve operational efficiency, accelerate new product development, and strengthen DGCX’s ability to respond to evolving market needs.
• Launched the Consumer Business Group (CBG) Gemini Experience Center (GEC) in Kolkata, India. The center will showcase AI-led innovations tailored for consumer business needs and built with Google Cloud and Google’s Gemini models.
• Launched Custom System-on-Chip (SoC) Design Services for automotive OEMs and semiconductor ecosystem companies. It brings together semiconductor engineering, VLSI (Very Large-Scale Integration) design, hardware-software co-design, and system validation capabilities. The comprehensive set of services cover every stage of silicon development, including architecture, design, verification, implementation, software integration, and system validation. This will help auto manufacturers conceive, design, verify, implement, and validate custom SoC solutions for the next-generation of software-defined vehicles.

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)

Consolidated Statements of Financial Position

As of March 31, 2026, and Sep 30, 2026

(In millions of $)