- How Did TCS Perform Financially in Q2 FY26?
- Vertical-Wise Performance: Where Did Growth Come From?
- Geographic Trends: How Did Different Markets Perform?
- TCS’s Bold AI Strategy and Future Plans
- Major Deal Wins Strengthen Growth Visibility
- Should Investors Be Bullish on TCS After Q2 FY26?
- Disclaimer
Tata Consultancy Services (TCS) has announced its results for the quarter ended September 30, 2025 (Q2 FY26). The company has delivered a steady financial performance, expanded its global deal pipeline, and made bold bets on AI infrastructure, signaling a clear long-term strategy.
How Did TCS Perform Financially in Q2 FY26?
TCS reported a revenue of ₹65,799 crore, growing 3.7% sequentially. In constant currency terms, growth stood at 0.8%.
| Metric | Q2 FY26 |
| Revenue | ₹65,799 Cr (+3.7% QoQ) |
| Revenue Growth in constant currency | 0.8% |
| Net Profit | ₹12,075 Cr (+1.4% YoY) |
| Net Margin | 19.6% |
| Operating Margin | 25.2% (+70 bps QoQ) |
| Cash Flow from Operations | 110.1% of Net Income |
| Dividend | ₹11 per share |
| Q2 Total Contract Value | US$10 billion |
The company also declared a dividend of ₹11 per share, with record date on 15 October 2025 and payment on 4 November 2025. These numbers reflect a stable growth trajectory and efficient operations, despite a mixed global demand environment.
Check TCS’s complete analysis on INDmoney by clicking here
Vertical-Wise Performance: Where Did Growth Come From?
TCS saw growth spread across multiple business segments during the quarter. The table below shows the revenue contribution by vertical along with their QoQ constant currency growth:
| Vertical | Revenue Contribution (Q2 FY26) | QoQ CC Growth (%) |
| BFSI | 32.2% | 1.1 |
| Consumer Business | 15.3% | -1.0 |
| Life Sciences & Healthcare | 10.5% | 3.4 |
| Manufacturing | 8.8% | 1.6 |
| Technology & Services | 8.5% | 1.8 |
| Communication & Media | 5.9% | 0.8 |
| Energy, Resources & Utilities | 5.9% | 0.6 |
| Regional Markets & Others | 12.9% | -1.1 |
Life Sciences & Healthcare led growth this quarter, while BFSI and Technology & Services also showed steady momentum.
Geographic Trends: How Did Different Markets Perform?
- Middle East & Africa (MEA) saw the highest growth of 5.9% QoQ and 12.7% YoY.
- India reported 4% QoQ growth.
- North America remains the largest market with a 48.8% revenue share, followed by the UK (17.5%) and Continental Europe (15.3%).
This diversification across verticals and geographies gives TCS a balanced growth engine.
TCS’s Bold AI Strategy and Future Plans
A key highlight this quarter is TCS’s strong push towards AI leadership. The company announced:
- Plans for a 1 GW AI data center in India, part of a new AI-focused business entity.
- Continued investment in AI talent through the world’s largest AI hackathon, involving 2.75 lakh employees.
- Strategic acquisition of ListEngage to strengthen Salesforce capabilities.
The company is clearly preparing to lead the AI services space globally.
Major Deal Wins Strengthen Growth Visibility
TCS added multiple large deals across industries and regions during the quarter:
- A $647 million, 7-year deal with Tryg (Denmark, Sweden, Norway) to standardise operations.
- A multi-year contract with a global healthcare company focused on AI, cloud and cybersecurity transformation.
- Extended partnerships with ALDI SOUTH, Weatherford International, and Kesko (Finland).
- Partnership with NOW Corporation (Philippines) to support national digital sovereignty through sovereign cloud.
- Enabled ICICI Lombard to become one of the first Indian insurers to achieve fully automated multi-region disaster recovery on AWS.
These long-term, high-value deals provide strong visibility for future revenues.
Should Investors Be Bullish on TCS After Q2 FY26?
TCS’s Q2 FY26 performance reflects steady financial growth and disciplined execution. The company has shown resilience across verticals and geographies, with healthy margins and a strong deal pipeline.
Its AI-led strategy and infrastructure investments indicate a clear focus on long-term capabilities. However, factors such as global IT spending trends, macroeconomic uncertainties, and execution risks could influence future performance.
For investors, TCS remains a large, stable IT services company, but future returns will likely depend on how effectively it scales its AI initiatives and sustains growth in a changing market environment.
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