logo
TCS Q1 revenue hits USD $7,421m, highlights AI & security wins

TCS Q1 revenue hits USD $7,421m, highlights AI & security wins

Techday NZ14-07-2025
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.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Placemakers Dunedin part of solar upgrade programme
Placemakers Dunedin part of solar upgrade programme

Otago Daily Times

timean hour ago

  • Otago Daily Times

Placemakers Dunedin part of solar upgrade programme

A store on a landmark Dunedin site is getting a solar-powered upgrade. Placemakers Dunedin, in Burns St, is among 20 buildings across the country selected for the installation of more than 8000 solar panels in total. It is part of a rooftop solar retrofit programme FortHill Property, an industrial investment fund established by Otago-founded construction company Calder Stewart, will roll out across its entire portfolio. General manager Nick Maier said work on Placemakers Dunedin was expected to take place next year. "The type of system you'd expect at a building of that size would be between 25kW and 50kW. "That could be anywhere from 75 to 150 panels, just depending on the final design and the panels you select." The business estimated the programme would provide a potential generation capacity of more than 4 million kWh per year. It announced yesterday it had launched a $50 million capital raise from its $432m national industrial property fund to expand its portfolio across Otago, Christchurch and Auckland. Placemakers Dunedin was currently FortHill Property's only asset in Otago and they were "very excited" to be coming back into the market again, Mr Maier said. "The interest rate cycle is right, the property cycle, we think, is good timing — we are really keen to attract investment. "Often it's out of the business, off-farm, intergenerational family kind of activity. "We're really proud of our kind of unique connection with Calder Stewart, which was originally founded in Milton, and the ability to grow what is now a national-scale investment fund originally started from those kind of humble beginnings." It typically looked at investments anywhere between $5m and $50m, with a focus on industrial sheds, Mr Maier said. "What we can find, where we can find it — if it meets our criteria, then we get straight into it." While their preference was to target the capital raise towards the funding of new buildings, the extent to which that went towards any of its wider green initiatives was case by case dependent, he said. FortHill had also partnered with ASB and New Zealand tech firm Tether to install AI-powered energy monitoring systems in 13 industrial facilities as part of a year-long pilot designed to identify energy usage patterns and reduce tenants' operating costs by up to 30%.

Developers adopt AI tools but trust issues persist, survey finds
Developers adopt AI tools but trust issues persist, survey finds

Techday NZ

time3 hours ago

  • Techday NZ

Developers adopt AI tools but trust issues persist, survey finds

Stack Overflow has released the results of its 2025 Developer Survey, detailing the perceptions and habits of more than 49,000 technologists across 177 countries. The AI trust gap The survey indicates a significant disparity between AI adoption and trust among developers. While 84% of respondents use or plan to use artificial intelligence tools in their workflow, nearly half (46%) report that they do not trust the accuracy of AI-generated output. This marks a substantial rise from 31% indicating a lack of trust in the previous year. This year's expanded artificial intelligence section included 15 new questions, addressing topics such as the utility of AI agent tools, the impact of AI on developers' jobs, and the phenomenon of "vibe coding". "The growing lack of trust in AI tools stood out to us as the key data point in this year's survey, especially given the increased pace of growth and adoption of these AI tools. AI is a powerful tool, but it has significant risks of misinformation or can lack complexity or relevance. With the use of AI now ubiquitous and 'AI slop' rapidly replacing the content we see online, an approach that leans heavily on trustworthy, responsible use of data from curated knowledge bases is critical. By providing a trusted human intelligence layer in the age of AI, we believe the tech enthusiasts of today can play a larger role in adding value to build the AI technologies and products of tomorrow," said Prashanth Chandrasekar, CEO of Stack Overflow. The survey found that 75% of users do not trust AI-generated answers, and 45% find debugging AI-generated code time-consuming. Ethical and security concerns are prevalent, with 61.7% citing these as reasons for hesitancy, while 61.3% wish to maintain full understanding of their code. AI use and productivity Despite low overall adoption, AI agents are associated with productivity improvements. Only 31% of developers currently use AI agents, but among those, 69% report increased workplace productivity. Meanwhile, 17% are planning to adopt such tools, while 38% are not planning to use them at all. A majority (64%) of developers do not see AI as a threat to their employment, though this figure has declined slightly from the previous year's 68%. Platforms and tools Visual Studio Code and Visual Studio remain the most used Integrated Development Environments (IDEs). New AI-enabled IDEs have entered the market, with Cursor at an 18% usage rate, Claude Code at 10%, and Windsurf at 5% among respondents. Among large language models (LLMs), OpenAI's GPT series is the most popular, used by 81% of developers surveyed. Claude Sonnet received 43% usage, and Gemini Flash 35%. Vibe coding and new ways of learning 'Vibe coding', defined as generating software from LLM prompts, was explored for the first time. While AI tools are being adopted for learning and development, nearly 77% of developers indicated that vibe coding is not part of their professional workflow. The trend is more relevant for less experienced developers seeking a rapid start, but it comes with a trade-off in the level of trust and confidence in the output. Community platforms continue to play an important role. Stack Overflow is the most common platform, used or planned to be used by 84% of respondents, followed by GitHub at 67%, and YouTube at 61%. Notably, 35% of respondents reported consulting Stack Overflow when confronted with AI-related issues. The survey shows that 69% of developers have learned a new technology or programming language in the past year, with 36% focusing specifically on AI-enabled tools. Usage of AI tools for learning to code has risen to 44%, up from 37% last year. Top resources remain technical documentation (68%), online resources (59%), and Stack Overflow (51%). For those learning AI-specific skills, 53% used AI tools. Gen Z developers (aged 18-24) are more likely to engage with coding challenges, with 15% participating compared to an overall average of 12%. Additionally, a higher proportion of this age group prefers chat-based and challenge-based learning approaches than other cohorts. International responses and technology adoption The United States, Germany, India, United Kingdom, France, Canada, Ukraine, Poland, Netherlands, and Italy were the top ten countries by survey participation. Trust in AI tools differs by region; India saw the highest proportion of developers expressing some or significant trust in AI at 56%, followed by Ukraine at 41%. Other countries showed lower levels of trust, including Italy (31%), Netherlands and United States (28%), Poland (26%), Canada and France (25%), United Kingdom (23%), and Germany (22%). Python continues to gain in popularity, with a seven percentage point increase since 2024. JavaScript (66%), HTML/CSS (62%), and SQL (59%) remain popular programming languages. Docker usage grew by 17 percentage points to 71%, marking it as a widely adopted tool in cloud and infrastructure development. PostgreSQL holds the position as the most sought-after database technology, with 47% planning to use it in the next year or continuing usage, marking its third year at the top in this category. For documentation and collaboration, GitHub leads at 81%, followed by Jira (46%) and GitLab (36%).

Ransomware threats rise, attackers adopt quadruple extortion
Ransomware threats rise, attackers adopt quadruple extortion

Techday NZ

time6 hours ago

  • Techday NZ

Ransomware threats rise, attackers adopt quadruple extortion

A new cybersecurity report highlights the increasing complexity and destructiveness of ransomware attacks targeting businesses and organisations in 2025, with attackers employing advanced extortion tactics and expanding their methods. Akamai has released a qualitative research report entitled "Building resilience amid a volatile threat landscape," which provides an analysis of the operations of prolific ransomware groups such as BlackCat/ALPHV, LockBit, Clop, and RansomedVC. The report explores how these groups have adapted their strategies in response to technological advancements and recent regulatory developments in the UK and elsewhere. Quadruple extortion The report identifies the emergence of quadruple extortion as a growing trend among cybercriminals. Traditionally, ransomware attacks followed a double extortion model, where attackers encrypted a victim's data and threatened to leak it publicly if a ransom was not paid. The new quadruple extortion tactics combine encryption with distributed denial-of-service (DDoS) attacks, public harassment, and threats of regulatory exposure, increasing the pressure on targeted organisations. "Ransomware threats today aren't just about encryption anymore. Attackers are using stolen data, public exposure, and service outages to increase the pressure on victims. These methods are turning cyberattacks into full-blown business crises, and are forcing companies to rethink how they prepare and respond," said Steve Winterfeld, Advisory CISO at Akamai. The sophistication of ransomware groups has been enabled in part by affiliate models, which allow individuals with varying technical abilities to participate in large-scale campaigns. The research found that ideological motivations are also playing a greater role, with some groups driven by political or social causes in addition to financial gain. This complicates the attribution of attacks and presents new challenges for defenders. GenAI and social engineering Another major development highlighted by Akamai is the use of generative artificial intelligence (GenAI) and large language models (LLMs) to automate aspects of ransomware campaigns. The report notes that such technologies are making it easier for less technically skilled individuals to write ransomware code and enhance social engineering tactics. This has contributed to an increase in both the frequency and scale of attacks in the past year. Hacktivist and ransomware hybrid groups have become more prominent, often utilising ransomware-as-a-service (RaaS) platforms to extend their reach. Dragon RaaS, which emerged in 2024 from the Stormous group, is cited as an example of this trend, having shifted its focus from large corporations to smaller organisations perceived as having weaker security defences. Impact on nonprofits and education The report also addresses the issue of cryptominers, which while distinct from ransomware actors, often use similar tactics and target sectors believed to be vulnerable. Akamai researchers found that nearly half of the cryptomining attacks examined targeted nonprofit and educational organisations, likely due to resource limitations in these industries. In addition, the TrickBot malware family is identified as a major tool for ransomware deployment. Since 2016, TrickBot has been used by ransomware groups globally to extort more than USD $724 million in cryptocurrency from victims. The Akamai Guardicore Hunt Team recently linked this malware to suspicious activity on the systems of several customers. Regulatory landscape The report provides an analysis of current legal and regulatory efforts influencing how organisations respond to ransomware incidents. Akamai's Vice President and Chief Privacy Officer, James A. Casey, commented on the need for organisations to adopt comprehensive cybersecurity strategies in light of evolving threats and regulatory requirements. Casey notes that while existing cybersecurity laws apply to ransomware, specific regulations focus on discouraging ransom payments. He also highlights the importance of robust cybersecurity measures, incident reporting, and risk management, as well as strategies like Zero Trust and microsegmentation, to build resilience against evolving ransomware threats. Casey stresses the necessity for organizations to stay informed and adapt to emerging threats. The report presents several actionable recommendations for security teams looking to anticipate and counter attacker tactics in 2025. These include staying abreast of the latest threat actor techniques, investing in robust cybersecurity defences such as zero trust and microsegmentation, and ensuring timely incident reporting and risk management strategies are in place. The detailed findings aim to provide organisations with the information they need to strengthen their resilience against ransomware, as threat actors continue to diversify their motives and approaches in a rapidly changing environment.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store