Tata Consultancy Services (TCS), India's largest IT services company, has announced its financial results for the first quarter of FY26, showcasing a steady performance amidst market expectations. The company's consolidated net profit witnessed a rise of nearly 6% year-over-year (YoY) and 4.4% quarter-on-quarter (QoQ). Alongside the financial results, TCS declared an interim dividend of ₹11 per equity share.

Financial Performance

For the first quarter of FY26, TCS reported a consolidated net profit of ₹12,760 crore, marking a 4.38% increase from the ₹12,224 crore reported in the previous quarter. While the net profit showed a positive trajectory, the company's revenue experienced a slight dip of 3% QoQ, amounting to ₹62,437 crore.

Various brokerage firms had anticipated a profit growth in the range of 0.4% to 3.1% YoY. Revenue projections for the period were estimated to be around ₹64,000 crore, indicating a growth of 2.7% to 4.3% YoY. However, actual figures reveal a slightly different picture, with profit aligning with expectations but revenue falling marginally short.

Dividend Announcement

Adding to its history of returning value to shareholders, TCS has declared an interim dividend of ₹11 per equity share. The dividend will be paid on August 4, 2025, to shareholders whose names appear on the company's records as of July 16, 2025.

TCS has consistently rewarded its shareholders with dividends, and in FY25, the company paid five installments, totaling ₹126 per share. This included three interim dividends of ₹10 each in July, October, and January, a special dividend of ₹66 in January 2025, and a final dividend of ₹30. In the past three years alone, the company has declared dividends to the tune of ₹1,08,852 crore.

Market Capitalization and Stock Performance

Ahead of the earnings announcement, shares of TCS were trading at ₹3,375.1 apiece, down 0.26% on the NSE. The market capitalization of TCS stood at ₹12,21,104.54 crore.

Factors to Watch

As TCS moves forward, several factors will influence its performance such as hiring plans, wage hikes, and deal wins. TCS is expected to hire 42,000 freshers in FY26. Investors and analysts are also closely monitoring announcements regarding wage hikes, which were deferred to Q1FY26 from Q4FY25. The company's ability to secure new deals, especially in areas like Gen AI and cloud services, will also be a key factor. TCS's Q4FY25 performance saw strong deal wins, with a Total Contract Value (TCV) of $12.2 billion, marking a 19.6% increase from the previous quarter. This highlights robust demand across AI-driven services, digital transformation, cloud, and IoT.