TCS vs Infosys Q4FY26: Which IT giant offers stronger visibility for FY27?

Tata Consultancy Services and Infosys reported their March quarter (Q4FY26) earnings with TCS leading across most key operating parameters.

The comparison across revenue growth, margins, profitability, deal wins, attrition, headcount and FY27 outlook showed TCS ahead in seven out of eight major metrics. Infosys was ahead only on employee attrition.

Both companies remain closely tracked by the Street as they are seen as key indicators of global technology spending trends and enterprise demand.

Revenue growth: TCS reports positive CC growth

TCS reported constant currency (CC) revenue growth of 1.2 per cent quarter-on-quarter in Q4FY26.

Constant currency revenue removes the impact of foreign exchange fluctuations and gives a clearer picture of actual business growth.

Infosys reported a 1.3 per cent decline in constant currency revenue during the same period.

This showed that TCS saw better business momentum in the March quarter, while Infosys faced slower discretionary spending and delayed client decision-making in some verticals.

Revenue: TCS remains significantly larger

TCS posted consolidated revenue of Rs 70,698 crore for the March quarter, up 5.4 per cent sequentially, according to its exchange filing.

Infosys reported revenue of Rs 46,402 crore, up 2 per cent quarter-on-quarter.

The difference highlights TCS’ larger scale and broader client presence across geographies including North America, Europe and India.

Higher revenue growth also reflects stronger deal execution and better conversion from its order book.

Margins: TCS continues to lead

TCS reported EBIT margin of 25.3 per cent in Q4FY26, improving by 10 basis points sequentially.

Infosys posted operating margin of 21 per cent, with an improvement of 15 basis points.

Both companies managed to protect margins despite wage hikes, demand uncertainty and cost pressures across global markets.

However, TCS remained clearly ahead in profitability, supported by better operational efficiency and stronger execution across business segments.

Profit after tax: both report strong growth

TCS reported profit after tax (PAT) growth of 28.7 per cent quarter-on-quarter.

Infosys posted PAT growth of 27.8 per cent during the quarter.

The difference was small, and both companies reported strong bottom-line growth.

Analysts noted that the favourable base effect and labour cost factors also supported quarterly profit growth for both companies.

Deal wins: TCS far ahead on order book

TCS reported total contract value (TCV) of $12 billion in Q4FY26.

Infosys reported large deal wins worth $3.2 billion during the March quarter.

Deal wins are closely watched because they indicate future revenue visibility.

A stronger order book helps improve confidence in revenue growth over the coming quarters.

On this front, TCS remained significantly ahead of Infosys.

Attrition: Infosys reports lower employee exits

Infosys reported attrition of 12.6 per cent.

TCS reported attrition at 13.7 per cent.

Lower attrition helps companies reduce hiring and training costs and improves project delivery stability.

This was the only major parameter where Infosys reported better numbers than TCS.

Headcount: TCS remains stable

TCS maintained its employee base at more than 5.8 lakh employees during the quarter.

Infosys’ headcount declined to around 3.28 lakh employees.

A stable headcount is often seen as a sign of stronger demand visibility and hiring confidence.

The reduction in Infosys workforce reflects a more cautious hiring strategy amid slower growth expectations.

FY27 outlook: TCS confident, Infosys cautious

TCS management said it sees a strong pipeline and healthy large deal momentum for FY27.

The company maintained confidence around demand recovery and enterprise spending across major markets.

Infosys, however, guided for FY27 revenue growth of 1.5 per cent to 3.5 per cent in constant currency terms.