Latest news with #AarthiSubramanian
Techday NZ
2 days ago
- Business
- Techday NZ
TCS Q1 revenue hits USD $7,421m, highlights AI & security wins
Tata Consultancy Services (TCS) reported consolidated revenue of USD $7,421 million for the first quarter of the financial year 2026, maintaining margins and showcasing key advances in AI and cybersecurity despite a marginal year-on-year decline. The company's latest financial results indicate a 1.1% year-on-year drop in revenue and a 3.1% decline on a constant currency basis, but reveal robust deal wins, with total contract value reaching USD $9.4 billion for the quarter. Operating margin stood at 24.5%, expanding 30 basis points quarter on quarter, while net margin rose to 20.1%, up 90 basis points compared to the previous year. Net income was reported at USD $1.5 billion, up 3.5% year-on-year. TCS ended the quarter with 613,069 employees, reflecting net headcount addition of 6,071 over the past year. Attrition in IT services was at 13.8%. Cash from operations was USD $1.5 billion, representing 100.3% of net income over the quarter. Market and segment performance By industry, Banking, Financial Services and Insurance (BFSI) led growth with a 1% year-on-year increase. Growth was also recorded in Technology & Services (1.8%) and Energy, Resources and Utilities (2.8%). However, declines were noted in Life Sciences & Healthcare, Communication & Media, Manufacturing, and Consumer Business. From a geographic perspective, North America contributed the largest proportion of revenue at 48.7% but saw a 2.7% decline. The UK and Continental Europe, accounting for 18.0% and 15.0% of revenue respectively, also recorded small drops. Conversely, Latin America, Asia Pacific, and Middle East and Africa posted growth of 3.5%, 3.6%, and 9.4%, respectively. India experienced a 21.7% year-on-year decrease. Strategic focus on AI and cybersecurity This quarter saw TCS highlight its continued investments and expansion in AI, generative AI (GenAI), and cybersecurity offerings. Commenting on the performance and market environment, K Krithivasan, Chief Executive Officer and Managing Director, said: "The continued global macro-economic and geo-political uncertainties caused a demand contraction. On the positive side, all the new services grew well. We saw robust deal closures during this quarter. We remain closely connected to our customers to help them navigate the challenges impacting their business, through cost optimization, vendor consolidation and AI-led business transformation". AI and Data services saw increased enterprise adoption, with clients moving from pilot to scaled GenAI deployments, especially in automation and data platform modernisation. TCS also reorganised its cloud business to integrate public cloud and infrastructure services, and broadened strategic partnerships with key technology providers including Microsoft. In cybersecurity, the company noted rising demand for managed detection, identity management, and AI-powered security solutions. Aarthi Subramanian, Executive Director – President and Chief Operating Officer, commented, "Across industries, clients are increasingly shifting their focus from use case based approach to ROI led scaling of AI. We are investing across the AI ecosystem including infrastructure, data platform solutions, AI agents and business applications. Launching TCS SovereignSecureTM Cloud, TCS DigiBOLTTM, and TCS Cyber Defence Suite, to accelerate India's AI led transformation was a particular highlight of this quarter". Partner ecosystem and customer programmes Key partnerships were expanded or newly established with a range of global organisations. Noteworthy programmes include collaborations with a European-headquartered global Life Sciences company for an SAP S/4HANA-led transformation across 80 countries, a partnership with IBM focusing on quantum research in India, and an agreement with a Canadian bank for enterprise data transformation via AWS Cloud. Further, TCS established new Automotive Delivery Centres in Germany and Romania to support development of next-generation mobility solutions. Several customers commented on their partnerships with TCS. Oli Byers, Chief Financial Officer of Virgin Atlantic, stated, "We exist to make our customers smile, it's that simple. As we look ahead to this next phase of our digital transformation, technology will enable us to deliver smarter, simpler, and more memorable experiences. TCS has been a partner for more than two decades and together we'll continue to build towards our vision of becoming the most loved travel company, powered by AI technology to modernize our systems, drive efficiency and deliver for our customers." Alan Jensen, CIO of Salling Group, commented, "At Salling Group, everything we do is ultimately to help make our customers' lives better. This project is no exception. Our partnership with TCS will help us better respond to their changing needs and do so responsibly and sustainably. This partnership helps us drive our 'Aspire 28' strategy that includes goals of more stores, acquisitions and mergers in existing and new markets." Other customer statements echoed the focus on leveraging TCS solutions for business transformation, operational efficiency, and customer engagement. Milind Lakkad, Chief HR Officer, commented on workforce development: "Talent Development is core to TCS. In this quarter, our associates invested 15 million hours in building expertise in emerging technologies, enabling them to lead the transformation journey for our customers. It is gratifying to note that TCS now has 114,000 people with higher order AI skills". Financial position and awards As of 30 June 2025, total assets were USD $19,686 million, up from USD $18,931 million at the end of March. Shareholders' funds totalled USD $11,679 million. Operating income for the quarter was USD $1,815 million, against USD $1,851 million in the same period the previous year. The company reported it had applied for 8,987 patents as of the end of the quarter, with 4,939 granted, underscoring ongoing research and development activity. TCS received multiple awards in the quarter, including recognition among Kantar BrandZ's Top 50 Global Brands, two golds at the New York Digital Awards, and top rankings for workplace and sustainability by various independent institutions. Industry analysts ranked TCS as a leader in 38 competitive assessments across digital services, application management, and AI-related disciplines in the first quarter of FY26.
New Indian Express
4 days ago
- Business
- New Indian Express
AI revenues have grown this quarter: TCS COO
BENGALURU: Tata Consultancy Services's the growth for the June quarter was led by AI & Data, TCS Interactive and cyber security. Though the company did not quantify specific revenues from AI, top executives in an interaction with the media said, from the new-age service line perspective, all offerings--AI, data & cyber security--have grown well in the June quarter and that the company is witnessing strong demand from its customers. "Customers are investing in industry-specific solutions. AI for modernisation is coming across as a strong theme because Gen AI is now becoming the tool to really understand the legacy code," said Aarthi Subramanian, Executive Director - President and Chief Operating Officer, TCS. Subramanian, who is the first woman COO at TCS, took charge from May this year. She said the company's AI revenues have grown in Q1.
Time of India
5 days ago
- Business
- Time of India
TCS management on use-case based approach to AI; identifies 4 areas of focus
K Krithivasan , CEO & MD, and Aarthi Subramanian , ED-President & COO, TCS , in conversation with ET Now. TCS is observing a shift from experimental Gen-AI projects to use-case driven implementations that deliver tangible business value. The company is investing in industry-specific and agentic AI solutions, upgrading its TCS WisdomNext platform, and forging strategic partnerships with hyperscalers and AI innovators. TCS is also prioritizing talent development to keep pace with the rapidly evolving technology landscape. On India-US trade talks and likely impact on IT K Krithivasan : I was using the word uncertain a lot and people said you are saying uncertain so many times. I would say people are going to wait and watch more and I have a feeling maybe once these discussions are over, sometime in July and August, there will be greater clarity on the direction the trade discussions take and also the new bill will be in place. All that will provide more clarity. Maybe the first week of August onwards, we should see a more definitive direction in the market. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Is it legal? How to get Internet without paying a subscription? Techno Mag Learn More Undo How are the clients responding this time? From February till now we have been waiting for this and ambiguity, uncertainty are the words which have been coming in and this is a general sentiment across industries and clients. Is there any delay in decision making due to that? K Krithivasan: There is. If a particular project is going to yield definitive and immediate results, you find that customers are starting off those projects, which typically tend to be the cost optimization projects. If a project is for investment or transformation, where the return on investment is uncertain, the customers are willing to wait for greater clarity before they embark or commit those investments. In terms of uncertainty, there is sometimes opportunity as well. I was really impressed with the choice of words you made during the release of the use case based approach to ROI led scaling of AI. I want to understand, are there new areas which you are focusing on and what is this approach which you want to apply now? Aarthi Subramanian : In the initial days of Gen-AI, everybody was in experimental mode, trying to understand what the technology is and what it can deliver. But after two-three years, now the power of the technology is well understood. So, what customers are looking at is how they shift from experimentation to a use case based approach to delivering projects which deliver a business value. That is the shift we are seeing. From the new services revenues perspective – whether it is AI, cyber security, public cloud or TCS Interactive – many of these new service lines have grown well in this quarter and continue to have good demand. In terms of investing in these areas and especially talking about AI, we are looking at building industry specific solutions bespoke for a customer and we are also investing in building agentic AI solutions which are industry solutions that we can take to customers proactively where we can go and do this rapid build projects which can deliver short projects but can deliver value faster and that is one of the initiatives that we are driving. Live Events You Might Also Like: Infosys, Wipro and other IT stocks fall up to 3% after TCS Q1 earnings disappoint on revenue quality The second area we are looking at is our flagship product, TCS WisdomNext. We have just upgraded it with the version 2.0 which has agentic AI capabilities and we are using our product and a platform-based approach to really see how we can accelerate buildout of these solutions. The third important element in any technology is partnerships. We are working with hyperscalers, model providers, and also new age partners like Vianai. We have just signed a partnership and we are seeing good uptake there. The last part of the equation and the most important is talent. We are doubling down on building the talent in a phase where the technology is rapidly evolving. You have mentioned that there is some impact on demand. Which are these areas which you have identified? K Krithivasan: You can look at it both from a vertical and horizontal perspective. Suppose you look at it from a vertical perspective, for instance manufacturing. Manufacturing auto as a segment that gets impacted because of the EV transition and confusion on where the investment is going to be because many of the auto manufacturers invested heavily in EV, but EV sales are still late to pick up globally, so there is a pullback on investments by auto. You Might Also Like: TCS Q1 Results FY26: Cons PAT up 6% YoY at Rs 12,760 crore; Rs 11 per share dividend declared Similarly, in the BFSI sector, insurance has been impacted for multiple reasons, particularly catastrophic losses in the US and other places. Capital markets tend to thrive under volatility, more than others. This is a broad classification. The tech sector, by and large, is doing well or if you take telcos, despite the expected reduction in interest rates, capex is not happening. You Might Also Like: TCS shares tumble 2% after Q1 show fails to cheer D-Street. Should you buy, sell, or hold?
The Hindu
5 days ago
- Business
- The Hindu
TCS Q1 net profit rises 6% to ₹12,760 crore; board declares interim dividend of ₹11 per share
In the backdrop of global uncertainties and geopolitical issues impacting businesses, Tata Consultancy Services Ltd. (TCS) reported 6% growth in net profit at ₹12,760 crore over the year ago period aided by one time gain of ₹600 crore for the first quarter of 2025-26 ending June 30. Revenue at ₹63,437 crore for the quarter, grew 1.3% Year on Year (YoY). However, the revenue declined 3.1% YoY in constant currency. Operating margin at 24.5% has seen an expansion of 30 bps quarter on quarter (QoQ). The net margin during the quarter was 20.1% . Net cash from operations at ₹12,804 crore was 100.3% of the net income during the quarter. The board has announced an interim dividend of ₹11 per share. Record date of dividend is July 16 and payment date is August 4. K. Krithivasan, Chief Executive Officer and Managing Director of TCS, said: 'The continued global macro-economic and geo-political uncertainties caused a demand contraction. On the positive side, all the new services grew well. We saw robust deal closures this quarter. We remain closely connected to our customers to help them navigate the challenges impacting their business, through cost optimization, vendor consolidation and AI-led business transformation'. Aarthi Subramanian, Executive Director - President and Chief Operating Officer who addressed the TCS press conference for the first time after joining during the last quarter, said: 'Across industries, clients are increasingly shifting their focus from using case-based approach to ROI-led scaling of AI. We are investing across the AI ecosystem, including infrastructure, data platform solutions, AI agents and business applications. Launching TCS SovereignSecureTM Cloud, TCS DigiBOLTTM, and TCS Cyber Defense Suite, to accelerate India's AI led transformation was a particular highlight of this quarter,' she said. Due to the uncertainties in business environment, the company has not announced any wage increase neither indicated any time frame in the near future. However, it said wage increase should be announced during the year. It has not quantified as to how many freshers would be onboarded this year but said it would honour all the job offers it had made on the campuses. As at the end of first quarter this fiscal, the company's workforce stands at 6,13,069. Net head count during the quarter increased by 6,071. The LTM IT Services attrition rate was at 13.8%. Milind Lakkad, Chief HR Officer, said: 'Talent development is core to TCS. In this quarter, our associates invested 15 million hours in building expertise in emerging technologies, enabling them to lead the transformation journey for our customer. It is gratifying to note that TCS now has 1,14,000 people with higher order AI skills,' he added. The company said it was confident of improvements in it's performance during this financial year. Samir Seksaria, Chief Financial Officer, said: 'We continued our investments in long-term sustainable growth this quarter. We stayed agile and adapted to the dynamic environment, delivering steady margins. Our industry leading profitability alongside robust cash conversion, positions us well to make strategic investments for the future'. During the quarter, industry-wise BFSI grew 1%, consumer de-grew 3%, life science de-grew 9.6%, manufacturing de-grew 4%, Technology Services grew 1.8%, Communications & media de-grew 9.6%, energy resources grew 2.8%, and regional markets de-grew 8.6% indicating the headwind faced by businesses. Region-wise, the company's North America business de-grew 2.7%, Latin America was up 3.5%, U.K. was down 1.3%, Continental Europe down 3.1%, Asia Pacific grew 3.6%, and India business was down 21.7% due to the impact of the completion of the BSNL contract and MEA grew 9.4%.
Indian Express
6 days ago
- Business
- Indian Express
TCS Q1 result: IT giant's net profit rises 6%, board recommends Rs 11/ share dividend
Indian IT major Tata Consultancy Services (TCS) on Thursday reported a 6 per cent growth in its consolidated net profit at Rs 12,760 crore for the first quarter ended June 2025 as against Rs 12,040 crore in the year-ago period. The company's revenue rose to Rs 63,437 crore, higher by 1.3 per cent as against Rs 62,613 crore in the year-ago period. However, TCS' revenue declined 3.1 per cent year-on-year (YoY) in constant currency. The company's operating margin was at 24.5 per cent, an expansion of 30 bps on a quarter-on-quarter basis. TCS' board also recommended a dividend of Rs 11 per share. 'The continued global macro-economic and geo-political uncertainties caused a demand contraction. On the positive side, all the new services grew well. We saw robust deal closures during this quarter,' K Krithivasan, managing director and CEO, said. 'We remain closely connected to our customers to help them navigate the challenges impacting their business, through cost optimisation, vendor consolidation and AI-led business transformation,' he said. TCS' shares remained subdued at Rs 3,382.30, down 0.06 per cent, on the BSE on Thursday. The share has fallen 26 per cent from the 52-week high level of Rs 4,585. Aarthi Subramanian, Executive Director-President and COO, said 'Across industries, clients are increasingly shifting their focus from use case-based approach to ROI-led scaling of AI. We are investing across the AI ecosystem including infrastructure, data platform solutions, AI agents and business applications.' TCS' workforce stood at 613,069 as on June 30, 2025. 'Our associates invested 15 million hours and acquired 1.3 million competencies in emerging technologies, enabling them to lead the transformation journey for our customers,' it said. IT services' attrition was at 13.8 per cent for the last 12 months. 'We continued our investments in long term sustainable growth this quarter. We stayed agile and adapted to the dynamic environment, delivering steady margins. Our industry leading profitability alongside robust cash conversion, positions us well to make strategic investments for the future,' Samir Seksaria, chief financial officer, said. According to TCS, this quarter, the AI and Data unit delivered robust growth, with enterprises advancing from pilots to scaled GenAI deployments. 'Demand was led by AI-led transformation, SDLC/IT-Ops automation, and data-platform modernisation. Our investments in WisdomNext, TCS' flagship AI platform are expanding with the addition of agentic AI capabilities. Strategic partnerships expanded, and our AI workforce with higher order skills exceeded 114,000, strengthening our leadership position in enterprise AI solutions,' it said.
