The American Depository Receipts of Wipro Ltd. and Infosys Ltd. were trading lower on Thursday after Tata Consultancy Services Ltd. posted its fourth quarter earnings. While the results were in line with analyst estimates, TCS reported its first ever decline in dollar revenue for a full financial year. In addition, US software shares also fell after Anthropic held back the wide release of a powerful AI model over concerns of exposure of hidden cybersecurity vulnerabilities.
While the ADR of Wipro fell over 1% at $2.23, Infosys was trading over 2.64% lower at $13.63. The fall in Wipro ADR comes despit the IT giant announced that it will consider a buy back proposal.
The ADR is a tool for multinationals/foreign companies (primarily based outside the US) or organisations to trade on US stock markets, just like regular shares of US companies.
In theory, an ADR is similar to a special certificate issued by a US bank. It is a negotiable certificate representing shares in a foreign company traded on US stock exchanges.
In the last fiscal the company posted a 0.5% year-on-year decline in dollar revenue at $30,017 million, while in constant currency terms, revenue fell 2.4%. Even during the pandemic-affected FY21, TCS had managed a marginal growth of 0.6%. Notably, in four of the five financial years preceding FY26, the company had already been witnessing only single-digit growth.
On a sequential basis, TCS posted a 5.4% quarter-on-quarter rise in rupee revenue to Rs 70,698 crore, with constant currency growth at 1.2%. For the full year ended March 31, rupee revenue increased 4.6% year-on-year to Rs 2,67,021 crore, although it registered a 2.4% decline in constant currency terms.
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.
ALSO READ: TCS Set To Announce Anthropic Partnership Soon As AI Push Accelerates
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.
TCS' quarter four newsflow was dominated by its deeper push into AI, with critical partnerships with the likes of OpenAI, AMD, ABB, Honeywell, ServiceNow, Nvidia, Cisco, Gitlab and Zscaler, among others. The management are also quite buoyant on AI, having witnessed sustained customer convinction in tech spends.
Annualised AI revenue also crossed $2.3 billion in the quarter, which is another indicator of the company's strong push towards the new technology.
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