Mon Jul 14 04:10:00 UTC 2025: ## Summary:

Tata Consultancy Services (TCS) announced its Q1 FY26 earnings, showing a 6% year-on-year increase in net profit to ₹12,760 crore. However, revenue growth was muted at 1.3%, and declined on a constant currency basis due to geopolitical uncertainty and weak demand, particularly in the BFSI and consumer verticals. The company expects a soft next quarter for the IT sector overall. While BFSI clients are cautious and discretionary spending is down, TCS anticipates improved performance in international markets compared to FY25, driven by increased order booking and customer inquiries. The company is optimistic about future growth as uncertainty resolves and spending returns.

## News Article:

**TCS Q1 Earnings: Profit Up, But Caution Prevails Amid Weak Demand**

Mumbai – India’s largest IT services provider, Tata Consultancy Services (TCS), kicked off the earnings season with mixed results for the first quarter of fiscal year 2026. The company reported a 6% year-on-year increase in net profit, reaching ₹12,760 crore, but the muted revenue growth and cautious outlook cast a shadow over the results.

Revenue from operations grew by a marginal 1.3% to ₹63,437 crore. On a constant currency basis, revenue was down, reflecting the impact of geopolitical uncertainty and weak demand across key markets.

The company’s performance was particularly affected by softness in the BFSI and consumer verticals. BFSI clients are prioritizing cost efficiency and data governance, while discretionary spending remains suppressed. The consumer sector is facing funding delays and project postponements.

Despite the current challenges, TCS remains optimistic about the future. CEO K Krithivasan expressed confidence that international markets would perform better in FY26 compared to the previous year, driven by improved order booking and increased customer inquiries. He also anticipates a rebound in spending once the current uncertainties dissipate.

Analysts expect the next quarter to remain soft for the entire IT sector. However, TCS’s management believes that the company is well-positioned to capitalize on future growth opportunities as the global economy stabilizes.

**Disclaimer:** *This article is for informational purposes only and does not constitute financial advice. Investors should consult with certified experts before making any investment decisions.*

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