TCS rides AI demand; mega deals power Q4 results

Tata Consultancy Services (TCS) reported a strong set of deal wins and strategic partnerships in the fourth quarter (Q4) of FY26.

The IT major has underlined its focus on artificial intelligence (AI), cloud, and large-scale enterprise transformation as key growth drivers in Q4.

Aarthi Subramanian, chief operating officer (COO) of TCS, also hinted at a potential partnership with Anthropic in the near future.


The company reported a total contract value (TCV) of $40.7 billion for FY26, including $12 billion in the fourth quarter alone. It also secured three mega deals in Q4 and five across the full fiscal year, including strategic partnerships with OpenAI, AMD, and Swedish multinational corporation ABB.

“We are pleased to report the third consecutive quarter of sequential growth, supported by three mega deals and a $12 billion TCV,” said K Krithivasan, CEO of TCS.

The company reported annualised AI revenues exceeding $2.3 billion. “FY26 marked a pivotal year for enterprise AI adoption,” said Subramanian.

During the year, TCS made an aggressive push into the AI ecosystem through collaborations with global technology leaders and strengthened enterprise alliances during Q4. Here’s a list of the major deals:

AMD

The company entered into a strategic alliance with Advanced Micro Devices (AMD) to jointly develop industry-specific AI solutions, combining the domain expertise of TCS with AMD’s high-performance computing portfolio. The partnership will also extend to building AI-ready data centre infrastructure in India.

OpenAI

TCS also announced a partnership with OpenAI, aimed at driving AI adoption across Tata Group companies and global clients. As part of the collaboration, the two companies will develop AI infrastructure in India, starting with 100 MW capacity and scalable up to 1 GW.

“AI adoption is accelerating, and unlocking its potential requires a new scale of high-performance computing and deep collaboration across the industry. Through our work with TCS, we are helping customers translate AI innovation into new growth opportunities across industries,” Sam Altman, CEO of OpenAI, said.

Nvidia

TCS also expanded its AI ecosystem through partnerships with Nvidia, launching a Rapid Outcome AI platform, and with ServiceNow to build AI-powered enterprise workflow solutions.

Cisco

TCS partnered with Cisco to set up a centre of excellence (CoE) in Hyderabad, focussed on autonomous enterprise operations, and with GitLab to enable AI-driven software development lifecycle orchestration.

ABB and Honeywell

The company also signed agreements with industrial majors such as ABB and Honeywell to drive AI initiatives, alongside launching a secure digital workplace platform in collaboration with Zscaler.

Morten Wierod, CEO, ABB, said, “Leaders in every sector are investing heavily in AI, but many are struggling to demonstrate a return on that investment. Productivity only increases when employees have the skills and confidence to work alongside new technology. Use AI to solve business challenges and deliver tangible productivity improvements.”

Also Read: TCS joins AI, data centre rush with $2 billion TPG alliance, draws gigawatt-scale plans

Google Cloud

Additionally, TCS expanded its innovation footprint with Google Cloud by launching a new Gemini Experience Centre in Michigan, aimed at accelerating AI-led transformation for global manufacturers.

Beyond partnerships, TCS continued to secure large, multi-year transformation deals across sectors, including telecom, retail, banking, aviation, and consumer industries.

It reported a 12% year-on-year (YoY) growth in consolidated net profit, which stood at Rs 13,718 crore in the fourth quarter. Revenue from operations rose 10% YoY to Rs 70,698 crore.

“While the macroeconomic headwinds continue, we see sustained customer conviction in technology investments, which positions us well for the opportunities ahead,” Krithivasan added.

Also Read: TCS Q4 FY26: Attrition rises to 13.7%; 2,356 employees added during the quarter