TCS posts 15% profit jump, AI revenue tops $3bn in Q2

Tata Consultancy Services posted a 15% year‑on‑year rise in net profit to ₹13,884 crore for the quarter ended September 30, 2026. Revenue grew 11.2% YoY to ₹73,188 crore and rose 1.3% sequentially. Net margin was 19% while operating margin stood at 24%. Cash generated from operations reached ₹14,190 crore, equal to 102.2% of net income. The company’s total contract value for the quarter was $9.6 billion. Annualised AI revenue crossed $3.1 billion, making up more than 10% of total revenue and signalling strong demand for AI‑led transformation. Workforce size increased to 598,056 employees, with attrition stable at 13.3%. Learning hours rose 17% sequentially to 17.1 million as the firm pushed upskilling in critical technologies. "We are pleased with the broad‑based growth in all our international markets and most industry segments," said K Krithivasan, CEO and Managing Director. He added that new partnerships with Porsche and Best Buy are building repeatable value platforms to industrialise AI at scale. Aarthi Subramanian, Executive Director, noted that AI momentum remained strong and that cybersecurity continued to be a key customer priority. CFO Samir Seksaria highlighted ongoing capability building through acquisitions and strong cash conversion. The board recommended a dividend of ₹12 per share, up from ₹11 last year, with a record date of October 14 and payment scheduled for October 30.

Context

AI revenue now exceeds $3 billion, showing that large IT firms are shifting from traditional services to AI‑centric solutions. The $9.6 billion contract value reflects a robust order book that supports future growth. Strong cash generation and stable attrition suggest TCS can sustain its investment in talent and technology.