Tata Consultancy Services (TCS) has set an ambitious course to become the world’s largest AI-led technology services company. The company’s second-quarter results for FY26 underscore a period of strong execution, disciplined growth, and accelerated investment in artificial intelligence, digital infrastructure, and strategic partnerships.
TCS reported revenue of $7.46 billion, growing 0.8% sequentially in constant currency, with broad-based growth across key verticals. Operating margin expanded by 70 basis points to 25.2%, while net income rose 3% year-on-year to $1.46 billion, reflecting steady profitability and operational resilience.
The company’s Total Contract Value (TCV) for the quarter stood at $10 billion, supported by large, multi-year deals across BFSI, healthcare, manufacturing, and retail. Cash flow from operations was strong at 110% of net income, underlining the company’s financial strength and disciplined execution.
Strategic Transformation Anchored in AI
TCS’s Q2 marked a strategic pivot toward scaling AI-first transformation across its operations, clients, and talent base. CEO and MD K Krithivasan emphasized that the company’s journey to become the world’s largest AI-led technology services company is “anchored in bold transformation across talent, infrastructure, ecosystem partnerships, and customer value.”
A key highlight is the launch of a new business entity to build a world-class AI infrastructure, including a 1 GW capacity AI datacenter in India. This facility will serve as a cornerstone of TCS’s AI services, supporting next-generation workloads across industries and enabling clients to accelerate adoption of agentic AI and cognitive automation.
The company is also nurturing an AI-first culture through large-scale employee engagement. Its global “Ideate and Build with AI” Hackathon, involving 275,000 TCSers, has been hailed as the world’s largest AI innovation event within a corporate environment—driving experimentation, cross-functional learning, and solution development across domains.
Inorganic Expansion and Strategic Investments
In a move that reinforces its commitment to strengthening enterprise solutions, TCS’s Board approved the 100% acquisition of US-based ListEngage, a Salesforce Summit partner specializing in Marketing Cloud, Data Cloud, and Agentforce capabilities. The acquisition adds over 100 professionals and 400+ Salesforce certifications to TCS’s U.S. workforce, significantly enhancing its AI and cloud-based customer engagement solutions.
Aarthi Subramanian, Executive Director and COO, noted, “We delivered strong growth momentum led by data, cloud, and AI-powered enterprise transformation. Our new AI and Services Transformation unit will further scale and integrate these capabilities to deliver speed, efficiency, and growth.”
Samir Seksaria, CFO, highlighted the company’s disciplined approach, stating, “Our robust balance sheet enables us to pursue both internal transformation and strategic investments, including wage hikes and ecosystem partnerships.”
Growth Across Verticals and Markets
Growth remained broad-based across industries—with Life Sciences & Healthcare leading at +3.4% QoQ, followed by Technology & Services (+1.8%), Manufacturing (+1.6%), and BFSI (+1.1%). Regionally, North America remained stable, while India (+4%) and MEA (+5.9%) saw healthy sequential growth.
TCS continued to win large transformation deals, expanding strategic partnerships across industries and geographies. These include:
A $647 million, seven-year deal with Tryg, Scandinavia’s leading non-life insurer, to simplify and standardize operations.
A major multi-hundred-million-dollar expansion with a global healthcare company for AI and data-driven transformation.
Long-term partnerships with ALDI SOUTH, Weatherford International, Kesko, ICICI Lombard, and The Warehouse Group, driving cloud modernization and AI-led automation.
A partnership with the NOW Group in the Philippines to build a Sovereign Data Cloud Infrastructure, advancing digital sovereignty and secure cloud technology in the Indo-Pacific region.
These wins reflect TCS’s strategic positioning as a trusted partner for large-scale digital and AI transformation initiatives.
