TCS Beats Estimates In Q2, Targets AI Dominance With $10 Billion Contracts

The company announced a second interim dividend of ₹11 per share.
(Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)
(Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)
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Preeti Ayyathurai·Stocktwits
Published Oct 09, 2025   |   7:16 AM GMT-04
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Tata Consultancy Services (TCS), India’s largest IT services company, has reported an earnings beat in the September quarter (Q2 FY26).

The IT bellwether reported a consolidated net profit of ₹12,075 crore. This slight decline was driven by a one-time restructuring cost of ₹1,135 crore booked during the period. On a year-on-year basis, profit rose 1.5% from ₹11,955 crore in Q2 FY25.

Revenue from operations came in at ₹65,799 crore. Growth was led by the Banking, Financial Services and Insurance (BFSI) segment, followed by Communications, Media & Technology, and Consumer Business.

Operating margin expanded by 70 basis points to 25.2%, while net margins stood at 19.6%

The company declared a second interim dividend of ₹11 per share, with October 15 as the record date, and payable on November 4. 

TCS announced its ambition to become the world's largest AI-led technology services company. This included significant investments such as establishing a new business entity for a 1 GW AI data center in India and acquiring ListEngage, a firm specializing in Salesforce.

The company reported total contract value (TCV) of $10 billion for the quarter, with multiple large deals across sectors.

Stock Watch

TCS shares ended 1% higher on Thursday, ahead of Q2 earnings print. 

Data on Stocktwits shows retail sentiment has been ‘neutral’ for a week as of market close. 

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TCS sentiment and message volume on Oct 9 as of 4:30 pm IST. | source: Stocktwits

Year-to-date, the stock has declined 25%

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