TCS Q2 reports USD 7.46B revenue, with commitment to build 1GW AI infrastructure

Tata Consultancy Services (TCS) has reported its financial performance for the quarter ending 30 September 2025 (Q2 FY26). The company posted USD 7.466 billion in revenue, marking a sequential growth of 0.8% in Constant Currency (CC) from the previous quarter.

Operating margin saw a notable increase, expanding by 70 basis points (bps) QoQ to reach 25.2%. Net income for the quarter was USD 1.464 billion. The total contract value (TCV) for the quarter stood at USD 10 billion.

Vertical performance

Growth momentum stemmed largely from the Banking, Financial Services and Insurance (BFSI) vertical, which grew 1.1% QoQ in CC. The Technology and Services segment grew by 1.8% QoQ in CC.

Geographically, the Americas, the company’s largest market, grew 0.8% QoQ in CC in North America. Continental Europe grew 1.4% QoQ in CC, and the Middle East & Africa (MEA) region showed the highest growth at 5.9% QoQ in CC.

Strategic move into AI infrastructure

TCS leadership confirmed the company’s pivot toward becoming an AI-led technology services business, backed by significant investments. A key announcement was the formation of a new business entity dedicated to building world-class AI infrastructure. This includes the development of a massive 1 GW capacity AI data centre in India.

CEO K Krithivasan stated the infrastructure investment demonstrates a commitment to this AI-led transformation, which spans talent, infrastructure, partnerships, and customer value.

The board also approved the acquisition of ListEngage, a firm with deep capabilities in Salesforce technology, further strengthening the company's enterprise application services.