TCS Q4 profit jumps 29% to ₹13,718cr; revenue beats estimates
What's the story
Tata Consultancy Services (TCS) has posted a stellar performance for the fourth quarter of FY26. The IT giant's consolidated net profit stood at ₹13,718 crore, a 29% increase from the previous quarter. This is just shy of CNBC TV18 poll estimate of ₹13,727 crore. The company's revenue from operations also saw a healthy growth of 5.4% quarter-on-quarter to ₹70,698 crore, beating the poll estimate of 3.4%.
Dividend declaration
TCS proposes ₹31 final dividend per share
The board of directors at TCS has proposed a final dividend of ₹31 per share for FY26. The proposal is subject to shareholder approval at the annual general meeting. For the entire fiscal year, the total shareholder payout in dividends stood at ₹39,571 crore. This reflects TCS's commitment to rewarding its shareholders despite a challenging business environment.
Business growth
Improvement in business momentum for 3rd consecutive quarter
TCS has reported an improvement in business momentum for the third consecutive quarter. The company posted a total contract value (TCV) of $12 billion for the quarter, including three mega deals. This brings FY26 TCV to $40.7 billion. The Energy, Resources and Utilities segment led growth with a 6.1% sequential increase in constant currency terms, followed by Consumer Business with 2.8% growth.
AI growth
AI revenue crossed $2.3 billion in Q4
TCS has also witnessed strong traction in its artificial intelligence-led business. The company's annualized AI revenue crossed $2.3 billion in Q4, driven by rising enterprise adoption of AI solutions. CEO K Krithivasan said the company's growth was supported by strong deal wins and broad-based demand across markets and industries despite macroeconomic headwinds. He added that sustained customer investment in technology positions TCS well for future opportunities.