TCS reports 3% revenue drop in Q1
Tata Consultancy Services (TCS) just had its first revenue dip in four years, mainly because clients are being extra careful with their spending.
Still, TCS managed to beat expectations with a 6% jump in net profit for Q1 FY26, hitting ₹12,760 crore.
They're sharing the good news with an ₹11 per share dividend coming up next August.
Revenue dropped by 3.1% (constant currency)
Revenue dropped by 3.1% (constant currency), thanks to tighter client budgets and global tensions.
The end of a big BSNL deal hit India hard (down 21.7%), while North America, the UK, and Europe also saw smaller declines.
Even so, TCS signed $9.4 billion worth of new deals—pretty solid for a tough market.
CEO K Krithivasan is staying positive
Despite slowdowns and project delays as clients want more bang for their buck, CEO K Krithivasan is staying positive: he expects international revenues will bounce back next year.
The company's leaning into cost-cutting and AI-driven changes to keep moving forward through all the uncertainty.