TCS Q4 results 2025 are below street estimates for revenue and profit, so will the market react negatively? How is management commentary, and how will the upcoming quarters be? What are the positives and negatives in the Q4 numbers, and what should investors do after the company’s Q4 announcement? we will cover all the above questions in this article.
TCS Q4 results 2025: a look at numbers
For the full year FY2025, TCS crossed a major milestone by generating more than $30 billion in revenue. In other major updates-
- FY 25 Revenue ₹255,324 crore, Growth +6.0% YoY, + 4.2% in CC
- Growth led by strong double-digit growth in Regional Markets: + 37.2% YoY
- In Q4 of FY 2025, Revenue at ₹64,479 crore, +5.3% YoY (CC growth of 2.5%)
- Growth led by Regional Markets(+22.5%), ERU (4.6%), and BFSI (+2.5%) YoY
- Operating Margin: 24.2%, Net Margin: 19.0%
- Strong Cash conversion: Operating Cash Flow 125.1% of Net Income
- Record Q4 TCV at $12.2 billion, Book-to-bill ratio of 1.6
- Final Dividend (proposed): ₹30 per share, to be approved at the Annual General Meeting
- Growth led by Energy, Resources and Utilities (+5.1%), Manufacturing (+2.9%) among Industry
Verticals - IOT/DE, Enterprise Solutions and AI.Cloud led the growth among Service Lines; Seeing strong
and increasing traction in AI-adoption - Operating Margin at 24.3%; Net Margin at 19.0%
- Strong TCV performance at $39.4 billion for FY25 and at $12.2 billion for Q4
- All Major Markets Grew Sequentially
Though TCS’s topline saw a modest growth of 0.79% YoY but the end profit was down 1.25%, and the company’s margin was at 24.19% vs 24.47%, down 27 bps.
Management Comments
Though management sounded optimistic as they expect FY26 to be better than FY25 but they also flagged caution as ongoing global uncertainty may derail the recovery. Though the management maintains fiscal 2026 margin guidance of 26–28% range.
K Krithivasan, Chief Executive Officer and Managing Director, said, “We are pleased to cross the $30 billion in annual revenues and achieve a strong order book for the second consecutive quarter. Our expertise in AI and Digital Innovation, coupled with the unmatched knowledge of customer context and global scale, makes us the pillar of support for our customers in this environment of macroeconomic uncertainty. We remain committed to staying close to our customers and helping them achieve their core priorities.”
He also pointed out that the improving market sentiment and revival in discretionary spending were not sustained due to ongoing tariff discussions, and the company is observing delays in decision-making and project commencements. He also stressed that some certainty is likely to emerge in the near term, after which businesses may take cost or discretionary decisions.
Positives and negatives in TCS’s Q4
Despite the challenging environment company posted a strong order book, but as the management pointed out, this uncertain period and order delays started after March due to ongoing tariff discussions, so the impact of it may become visible in the next quarterly numbers. The biggest positive for us in TCS’s Q4 number is that the company’s AI capabilities are getting wider recognition, and a strong order book coming out of AI projects will strengthen the company’s positioning in this uncertain environment.
Ongoing tariff negotiations, H1B visa issues, and swiftly changing business environments in the Americas and the North American region are the biggest challenges for TCS and other Indian IT companies operating in the region. In terms of segment-wise revenue going forward, Communication & Media revenue will de-grow due to BSNL deal nearing completion.
Verticals like manufacturing, auto, consumer business, and banking or other financial services may also see degrowth due to ongoing tariff discussions and trade wars among major economies. Businesses in these sectors may not sign major deals in the Americas or the North American region until the clarity emerges in tariff negotiations. Clients in Asia or Europe may also take time to finalize deals due to these uncertainties.
TCS stock price outlook
The stock of TCS is weak as it is below some important short and long-term moving averages. YTD, the stock is down more than 20% from its highs.
2950-3,000 is a strong support for the stock, but if it slips below this level, it can fall to 2500-2550. For TCS, a major downside from here looks difficult as the stock is already corrected, but given the uncertainties, we do not expect any major upside in the stock either until some clarity emerges in tariff and trade discussions. Our advice to investors is that, instead of the IT sector, they should focus on sectors, companies that have less or no global exposure or can benefit from ongoing trade escalations.
