Tata Consultancy Services closed the December quarter with a lower employee count, reporting 5,82,163 staff, a decline of 11,151 compared with the previous quarter.
Even with fewer people on its rolls, the company said it has significantly expanded its pool of employees trained in artificial intelligence. More than 217,000 associates now work on projects that involve advanced AI skills.
For Q3 FY26, TCS reported ₹67,087 crore in revenue, up slightly from the previous quarter. Net profit rose to ₹13,438 crore, while operating margins held steady at 25.2 per cent.
Focus Shifts to Skills Over Headcount
The company has been reworking its delivery model by relying less on large teams and more on automation and specialised talent. Management has indicated that new client engagements are now structured around AI, reducing the need for traditional manpower-heavy execution.
This approach is reflected in business performance. TCS said AI-related services now generate about $1.8 billion in annualised revenue, with steady growth during the quarter. The total value of contracts signed stood at $9.3 billion, pointing to continued enterprise demand.
Strong cash flow during the quarter supported ongoing investments in technology and skilled hiring. Cash flow from operations exceeded net profit.
The December quarter results show TCS continuing its transition toward an AI-led services model, even as overall hiring remains cautious across the IT sector.
