TCS logs first annual revenue decline since listing despite Q4 recovery

Tata Consultancy Services (TCS) closed FY26 with a modest recovery in quarterly growth, but not enough to offset a broader slowdown that pushed it into its first full-year revenue decline in dollar terms since listing.

The results underscore a shifting demand environment, where macro uncertainty and the early impact of artificial intelligence (AI) are beginning to weigh on the IT services giant’s traditional growth model, even as the company expects a gradual recovery in FY27.