IT bellwether Tata Consultancy Services Ltd (TCS), which kicked off the IT earnings season on a relatively positive note, delivered a strong total contract value (TCV) performance of $40.7 billion for FY26 and $12 billion for Q4 -- among the highest TCV figures recorded by the company. The quarter included three mega deals, while the full financial year saw five mega deal wins, highlighting continued deal momentum despite macro uncertainties.

For Q4 FY26, TCS reported revenue of $7,621 million, registering a 1.5 per cent quarter-on-quarter (QoQ) growth and 1.2 per cent growth in constant currency (CC) terms. However, for the full financial year FY26, revenue came in at $30,017 million, reflecting a marginal decline of 0.5 per cent year-on-year (YoY) and a 2.4 per cent drop in CC terms.

The company's annualised AI revenue crossed $2.3 billion in Q4 FY26. TCS ended FY26 with an employee headcount of 5,84,519.

TCS also proposed a final dividend of Rs 31 per equity share, subject to shareholder approval at the upcoming Annual General Meeting (AGM). For FY26, the company returned Rs 39,571 crore to shareholders through dividends.

K Krithivasan, Chief Executive Officer and Managing Director at TCS, said, "While the macro-economic headwinds continue, we see sustained customer conviction in technology investments, which positions us well for the opportunities ahead."

Annual salary hike

The ÍT major's management also provided an update on annual salary hikes. Sudeep Kunnumal, Chief HR Officer, said, "We are pleased to implement annual salary increases across all grades effective (from) April 1 (2026)."

He added, "In Q4, we continued to invest in a future-ready workforce with strong additions across experienced talent and campus hires. Building an AI-first culture and equipping our people with AI-ready skills remained a key priority in FY26 and will continue into FY27, as we align closely with our customers' evolving needs."

TCS reported an FY26 operating margin (excluding one-offs) of 25 per cent, up 70 basis points (bps) YoY, marking its highest operating margin in the last four years.