Tata Consultancy Services Ltd., India's largest IT company, has reported its first-ever year-on-year decline in dollar revenue since its 2004 listing. For financial year 2026, US dollar revenue fell 0.5% compared with the previous year, while the constant currency decline was sharper at 2.4%, according to earnings disclosed on Thursday.
This breaks a long record of uninterrupted growth, including during the Covid-19 pandemic period, when the company still posted 0.6% growth in fiscal 2021. Notably, in four of the five financial years preceding FY26, the company had already been witnessing only single-digit growth.
Artificial intelligence-led pricing pressure is seen as a key structural reason behind the revenue contraction. In addition, several one-off costs significantly impacted performance during the year. These included restructuring expenses of Rs 1,388 crore, labour code-related costs of Rs 2,128 crore, and legal expenses of Rs 1,010 crore.
TCS Revenue Growth In Dollar Terms
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TCS Q4 Results
TCS reported a 29% sequential rise in its net profit for the fourth quarter of FY26, according to an exchange filing on Thursday. The IT giant registered its consolidated bottom-line at Rs 13,720 crore for quarter ended March 31, 2026. In the previous quarter its net profit stood at Rs 10,657 crore. Analysts on Bloomberg had estimated a net profit of Rs 13,581 crore.
Revenue rose 5.5% to Rs 70,698 crore from Rs 67,087 crore, beating analysts' estimate of Rs 67,087 crore. Earnings before interest and taxes rose 6% to Rs 17,870 crore, up 6% from Rs 16,889 crore in Q3, FY26. Whereas EBIT margin stood at 25.3%, compared to 25.2% in the third quarter.
In addition, India's largest IT services firm is gearing up to announce a strategic partnership with Anthropic, as it saw a deeper push into artificial intelligence in fiscal 2026. Aarthi Subramanian, Executive Director, President and Chief Operating Officer at TCS, said the company is “working significantly” with Anthropic and that a formal announcement is expected soon.
Chief Financial Officer Samir Seksaria during the con call highlighted that fiscal 2026 saw intensified investments, particularly in artificial intelligence partnerships, as the company was looking to scale innovation-led growth.
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