TCS reports $1.5 billion in annual AI revenue; completes over 5,500 AI projects

“This is reflecting in every service line, the AI revenue is growing and growing significantly. Whether it's BFSI or Life Sciences, you see a strong growth across the board…The re-imagination of services actually is creating growth acceleration for every service line. Today, non-traditional services or the new age services, constitute almost $11 billion of our revenue,” he added.

TCS' AI revenue growth has been higher than the company's average growth rate.

TCS’ larger AI ambitions

Krithivasan emphasised that TCS’ customer context, deep customer relationships, the experience it has built and the investment the management aims to put in and the strategy they have, makes it poised to be the “world's largest AI-led tech services company.”

“In fact we feel that we are destined to be there,” Krithivasan said.

TCS has been investing heavily into building AI infrastructure, acquiring certain capabilities through acquisitions, restructuring organisation to align with its AI roadmap.

During TCS' Q2 earnings conference in October, the company's management shared its plans to invest approximately $6.5 billion into building 1 GW of data centre capacity over the next five to seven years.

As of November, TCS said it will be investing $2 billion (Rs 18,000 crores) along with global alternate asset management firm TPG to fund its AI data centre business, HyperVault. The investment will happen in tranches over the next few years.

In less than three months, TCS also acquired two Salesforce consulting firms, ListEngage MidCo for $72.8 million and Coastal Cloud in a $700-million all-cash buyout.

TCS doubles down on AI native freshers

While TCS had earlier shared that it is going to hire around 42,000 freshers in FY26, the company will now be focusing on doubling down on AI-native fresher or trainee hiring.

TCS is also changing its hiring strategy to overall to by onboarding lateral talent with future-ready skills.

“This is a very exciting time because all these fresh graduates are very AI native. They really know how to use AI very organically. Our intake of fresh trainees from universities have actually doubled on that,” Aarthi Subramanian, Executive Director – President and Chief Operating Officer, TCS said.

She added, “AI is also introducing new roles. We have rapid build engineers, rapid build leads. We are now looking at new roles that are becoming very relevant for the future. We are looking at future ready hiring, securing top talent. Over the last year we have doubled down on advisory and consulting talent across the big bets.”

By big bets, she explained that TCS is hiring more in the areas of cyber security, enterprise solutions, cloud, advisory and consulting talent etc., that’s positioning them closer to customers.

“Today more than 50 per cent of our experience hires are you know are coming with next gen skill sets,” she added.

In July, TCS had said that it will be letting go of 2 percent of its workforce, or roughly over 12,000 employees in FY26, in a bid to become more agile and future-ready amid rapid disruptions in technology.

TCS has also ramped up its AI skilling programme. Subramanian said, "In the last six to eight months, we have built what I believe is one of the largest AI infrastructure available for employees. 600,000 TCSers have access to AI at their fingertips. This includes access to all the models, all the coding assistants and other tools, and also access to all the hyperscaler AI tooling which is available with which we actually build solutions for our customers."