TCS hits $1.5 billion annual AI revenue; executes 5,500+ projects

Tata Consultancy Services (TCS) has disclosed an annual AI revenue of $1.5 billion, marking the first time the IT major has quantified its financial performance in the artificial intelligence sector. Speaking at the TCS Analyst Day on December 17, CEO K Krithivasan stated that the company has completed over 5,500 AI projects. The company’s AI-specific services are currently growing at a quarter-on-quarter rate of 16.3%, outpacing the firm's overall average growth.

The AI pipeline is heavily concentrated among the company’s largest partners, with 54 of its top 60 clients and 85% of clients generating over $20 million in revenue currently utilizing TCS for AI work. Krithivasan noted that this growth is distributed across all service lines, particularly in BFSI (Banking, Financial Services, and Insurance) and Life Sciences. New-age and non-traditional services now contribute approximately $11 billion to the company’s total revenue.

Strategic Infrastructure and Acquisitions

TCS is executing a roadmap to transition into the "world’s largest AI-led tech services company" through significant capital expenditure and targeted M&A activity.

Data Center Expansion: The management plans to invest $6.5 billion to build 1 GW of data center capacity over the next seven years.

HyperVault: TCS partnered with TPG to invest $2 billion into HyperVault, its dedicated AI data center business.

Salesforce Acquisitions: To bolster its enterprise capabilities, TCS recently acquired ListEngage MidCo for $72.8 million and Coastal Cloud for $700 million.

Workforce Transformation and AI-Native Hiring

The company is shifting its human resources strategy to focus on "AI-native" talent. While maintaining a target of 42,000 fresher hires for FY26, Executive Director Aarthi Subramanian confirmed that university trainee intake has doubled to prioritize graduates who use AI organically.

The firm is also introducing specialized roles, such as rapid build engineers and rapid build leads, while focusing lateral hiring on cybersecurity, cloud, and consulting. Currently, over 50% of experienced hires possess "next-gen" skill sets. To support this transition, TCS has provided 600,000 employees with access to a proprietary AI infrastructure, including coding assistants and hyperscaler tooling. This internal pivot follows an earlier announcement that the company would reduce its workforce by 2%, or roughly 12,000 employees, in FY26 to improve organizational agility.