TCS Reports 2.5% Revenue Growth in Q4 Amid Slowdown

Fast Summary

• TCS achieved a milestone of $30 billion revenue in FY25, marking 4.2% growth in constant currency compared to 3.4% the previous year.
• Q4 revenue growth slowed sharply to 2.5%, down from 5.5% (Q2) and 3.6% (Q3), impacted by curtailed discretionary spending and deferred decision-making processes.
• Sequentially, Q4 experienced a de-growth of 0.8%, though major markets and most industry verticals reported growth overall.
• North America, accounting for around half of TCS’s business, saw revenue decline by 1.9% in Q4 and by 1.8% for FY24-25.
• Operating margins fell slightly to 24.2% for March quarter compared to last quarter’s figure of 24.5%; CFO samir Seksaria reiterated a guiding margin target between 26%-28%.
• CEO K Krithivasan noted short-term uncertainty linked to project delays but expressed optimism that conditions would stabilize in the coming months, projecting better performance in FY26 based on order bookings and deals signed thus far.

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Indian Opinion Analysis
TCS’s recent earnings report highlights challenges stemming from global economic uncertainties affecting IT sector spending decisions such as project ramp-downs and decision deferrals rather than outright cancellations-a possible indication that recovery may be slower but still feasible within the next fiscal year (FY26). The reduced North American market performance stands out as critical since this region drives half of TCS’s overall business; regaining momentum there is likely pivotal.

the slight dip in operating margins amidst steady market caution reflects TCS’s efforts toward managing profitability against fluctuating demand signals globally while maintaining strategic confidence through its stated vision of stabilizing mid-to-long-term revenues aligned wiht robust deal pipeline trends noted above reflecting prospect areas momentary-interspersed muted concludes