TCS Signals Strong Deal Momentum and Global Growth Outlook for FY26

Tata Consultancy Services shared a cautiously optimistic outlook for FY26 during its Q2 analyst call held on October 9, 2025. Despite ongoing constraints in discretionary tech spending, the company remains confident in its global growth trajectory and deal pipeline strength.

Key takeaways from the analyst call:

- Clients are continuing to control discretionary technology spending, especially in sectors like consumer goods and life sciences  
- TCS expects international revenue growth in FY26 to surpass FY25 levels, driven by demand in banking, energy, and manufacturing verticals  
- Deal wins for Q2 FY26 totaled $10 billion, exceeding the previous quarter’s $9.4 billion  
- Constant currency revenue growth stood at 0.8 percent sequentially, marking a recovery after two quarters of decline  
- Net profit for the quarter was ₹12,075 crore, slightly below analyst expectations but reflecting stable performance  
- EBIT margins expanded by 70 basis points to 25.2 percent, supported by improved offshoring and cost management  
- TCS announced a second interim dividend of ₹11 per share, with a record date set for October 15  
- The company emphasized its strategic pivot toward AI-led transformation, cloud services, and rapid value realization for clients  
- Initiatives like the AI Hackathon and the launch of a new AI and Services Transformation unit were highlighted as key drivers of innovation  

TCS CEO K Krithivasan reaffirmed the company’s commitment to becoming the world’s largest AI-led technology services provider, underscoring bold transformation across talent, infrastructure, and ecosystem partnerships.

While discretionary spending remains under scrutiny, TCS’s diversified portfolio, strong execution, and focus on next-gen technologies position it well for sustained growth in FY26.

Sources: CNBC TV18, SFC Today, LiveMint