$30 billion revenue milestone achieved while maintaining industry-leading 24.3% operating margins and 19% net margins, demonstrating TCS's ability to scale profitably with exceptional return ratios and strong balance sheet.

“I'm pleased to announce that we are concluding FY '25 by surpassing the $30 billion revenue milestone. We have achieved this while maintaining industry-leading margins, exceptional return ratios and a strong balance sheet. Our financial year 2025 revenue grew by 4.2% in constant currency. Our operating margin for the year came in at 24.3%. Our net margin was at 19%.”

— K Krithivasan, CEO

Record Q4 Total Contract Value (TCV) of $12.2 billion with North America hitting all-time high of $6.8 billion and BFSI contributing $4 billion, demonstrating market share gains despite macro headwinds and notably achieved without mega deals.

“Our record Q4 TCV of $12.2 billion demonstrates our ability to gain market share. North America TCV reached an all-time high of $6.8 billion. BFSI TCV was $4 billion, and Consumer Business Group contributed $1.7 billion. This impressive performance stands out in the absence of mega deals.”

— K Krithivasan, CEO

Economic uncertainty escalated dramatically since January with management highlighting unprecedented shift in global economic and geopolitical landscape, causing delays in client decision-making and heightened scrutiny of discretionary spending.

“We have all been witnessing an increased level of uncertainty in the global economic and geopolitical landscape in the last few weeks, making a shift from our commentary in January... We have seen instances of delays in decision-making and discretionary spending has come under heightened scrutiny and pressure recently.”

— K Krithivasan, CEO

AI integration becomes standard client expectation across all new programs, fundamentally shifting from experimental to embedded service delivery with productivity gains now expected rather than optional add-ons.

“See what's happening is, any program that we sign today, there is a request and expectation from the customer that there would be a leverage of AI. It need not necessarily mean that the whole program will be done in AI. There'll be an expectation that for some aspects of Software Engineering, we'll leverage AI, and through AI, it will be expected to deliver a certain amount of productivity.”

— K Krithivasan, CEO

Pipeline strength remains robust despite delays providing confidence for strong win rates and TCV performance once macroeconomic decision-making normalizes, suggesting underlying demand integrity intact.

“So, what we can talk about is our pipeline. Our pipeline continues to be strong at a very high level and so it gives us the confidence. As decisions are being made, we will have a strong win rate, and we'll be able to report a good TCV.”

— K Krithivasan, CEO

[Transcript]

“North America was flat with 0.1% growth, while the UK and Europe declined by 0.3% and 3.1% respectively. Asia Pacific remained stable, but the Middle East, Africa, and Latin America saw declines. India reported a significant 32.6% drop this quarter.”

“..North America was flat at about 0.1% growth while the UK and Europe declined by minus.3 and minus 3.1% respectively. Amongst new growth markets, Asia Pacific remained flat while Middle East Africa and Latin America declined sequentially. India declined by 32.6% in this quarter..”

— K. Krithivasan, CEO & MD

The company is ramping up investments in the AI ecosystem, covering infrastructure, data platforms, AI agents, and business applications. It now has 114,000 associates with advanced AI skills among the highest in the industry.

“We are increasing our investments across the AI ecosystem including infrastructure, data platform solutions, AI agents and business applications.”

“Our 114,000 associates with higher order AI skills represent one of the highest numbers in the industry.”

— K. Krithivasan, CEO & MD

The company is still evaluating the business outlook and has not yet made any decisions regarding wage hike front.

“See we are still calibrating we still yet to decide in terms of what is how the business decision will turn around and how when will it turn around and based on that we decide. So we have not made any decision on that front yet.”

— Milind Lakkad, CHRO

The company noted that many enterprises are in a wait-and-watch mode due to ongoing uncertainty, leading to increased caution and project delays. This impacted Q1 performance compared to initial expectations.

“..I think I would I see it as a lot of enterprises being on a wait and watch mode on getting more clarity as it happens but that that uncertainty impacts us more because in a wait and watch mode everyone starts getting cautious delays start happening and that is one of the reason what we saw play out in Q1 against what we were planning for”

— Milind Lakkad, CHRO

The company sees AI growth coming from three key areas: industry-specific solutions, modernization of legacy systems to reduce technology debt, and scaling AI initiatives from pilot projects to ROI-driven deployments.

“If I look at where the growth has come from in AI I would say that it has come from three areas, one of the industry specific solutions that our customers are building. Second uh Kiti talked about technology debt. So customers are turning to AI to really modernize their technology estate. So I think that's an area which is showing an uptick especially in some industries. And I would say the third area is where uh as you start moving from pilots to more scaled ROI projects in AI, customers are looking at how do you do this at scale .”

— Aarti Subramanian, President and COO

Last quarter, the company had flagged potential headwinds from reduced operating leverage due to higher utilization. It had invested in capacity anticipating growth, but late-quarter demand contraction impacted performance.

“If you look at last quarter, we did call out given the uncertainty from a headwind which we called out was that operating leverage might be impacted with higher utilization and that is one thing which played out. We anticipated growth and invested in cap uh capacity whereas we saw towards the end some demand contraction coming in and that was one impact.”

— K. Krithivasan, CEO & MD