TCS Q4 Results: IT firm crosses $30 bn in annual revenues, hails AI adoption

India’s largest IT services firm Tata Consultancy Services on Thursday posted lower-than-expected revenue during Q4FY25 amid persistent weakness in the U.S. market. However, it witnessed a jump in its Q4 revenue on a year-on-year (YoY) basis to ₹64,479 crore as against ₹61,237 crore posted in the same period last fiscal. The company further noted that it was now seeing “increasing traction in AI adoption” with IOT/DE, enterprise solutions and AI.Cloud leading the growth among service lines.

“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,” said CEO and MD K Krithivasan.

TCS reported a total revenue of Rs 64,479 crore in Q4 FY25 — up 5.3% over the year-ago period. TCS’ net profit rose 5.76% year-on-year to Rs 48,553 crore for the full year FY25. The IT firm also wrapped up the fiscal FY25 with a full-year topline growth of 5.99% at Rs 2,55,324 crore.

The company announced several key deals in its Q4FY25 quarter including a strategic partnership with Google Cloud for customers in the communication, media, and information services industry. This partnership aims to accelerate AI adoption for telecommunication enterprises by “combining TCS’ deep domain expertise with Google Cloud’s robust platform”.

TCS secured deals with Vantage Towers to create a digital platform for property owners leasing land for telecom towers and extended its partnership with Coop Danmark to improve operations and customer experience by managing their SAP S/4HANA ERP system across 900+ stores. Further wins include a digital transformation agreement with Oman's Muscat Clearing and Depository (MCD) and the launch of a new delivery centre in France.

The company said that winning themes across key deals involved “vendor consolidation, technology modernization, CX transformation, data for AI and AI for IT”. It also noted that clients had continued to scale up their investments in AI and GenAI — with TCS gaining significant traction for its GenAI and Agentic AI services and solutions across industries and markets.

Biswajit Maity, Sr Principal Analyst at Gartner noted that TCS's 6% year-over-year revenue growth in Q4 was fuelled by energy, resources & utilities, manufacturing, consumer business, and regional markets.

“Despite facing several challenges such as global uncertainties, federal budget cuts, reduced discretionary spending, and increased global competition, TCS successfully managed its financial position. Furthermore, the company's deal acquisitions are expected to remain stable, as it has positioned itself as a strategic provider across nearly all industries,” he said.

According to Gartner, TCS is likely to continue being a valuable partner for clients, with a strategy that aligns well with market demands and clients' digital transformation objectives.

The industry anticipates a return to double-digit growth in 2025, driven by digital transformation and Generative AI, which 57% of providers see as a key catalyst.

Of the other developments, TCS today announced the appointment of Aarthi Subramanian as executive director-president and chief operating officer of the company. The appointment is for a term of five years, commencing from May 1, 2025, to April 30, 2030. The last time TCS had a chief operating officer role was before 2009, when N Chandrasekaran, chairman, of Tata Sons, was appointed to that position. The company also announced the appointment of Mangesh Sathe as Chief Strategy Officer.