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Tata Consultancy Services (TCS), India’s largest IT services company, is set to announce its Q2 FY26 results on October 9, 2025, a date that holds significant importance for shareholders amid a period of rising uncertainty, global policy headwinds, and disappointing stock performance.
This quarterly result is being viewed as a make-or-break moment for the IT giant, which has recently come under intense investor scrutiny following its decision to lay off 12,000 employees, the largest downsizing move in recent years. The news of layoffs has shaken investor confidence, leading to a sharp decline in the stock price, which has fallen below ₹2,900 at one point before slightly recovering to ₹3,020 on October 8, just a day ahead of the results. The current price levels mirror those last seen in 2020, erasing almost all gains achieved over the past five years.
A Stock Stuck in Time: Zero Returns in Five Years
Despite consistent profitability and revenue growth, TCS’s stock performance has been puzzling. Over the past five years, TCS has delivered nearly zero returns to shareholders, a shocking fact for one of India’s most valued IT companies.
Back in October 2020, TCS reported a net profit of around ₹7,475 crore. Fast forward to the latest quarter of FY26, and the company’s net profit has soared past ₹12,000 crore — a nearly 60% increase in earnings over five years. Yet, the stock remains stuck at the same levels as 2020, trading around ₹3,000–₹3,100, highlighting the disconnect between the company’s financial performance and market valuation.
Analysts point out that multiple global and domestic headwinds have overshadowed TCS’s consistent profitability. The recent layoff announcement and weak demand from key international clients, coupled with geopolitical tensions and visa policy changes, have dampened investor sentiment.
Trump’s New H1B Visa Curbs Add to Worries
Adding to the concerns, U.S. President Donald Trump recently announced new curbs on H1B visas, a move that could impact major Indian IT exporters, including TCS, Infosys, and Wipro. Although the policy change reportedly applies only to new visa holders, it still poses a potential risk to business continuity and new project onboarding in the U.S. — TCS’s largest market.
While the company has maintained that existing visa holders won’t be affected, market experts believe that any policy tightening around work visas can create long-term challenges for Indian IT companies, especially in terms of client acquisition and staffing flexibility in onshore projects.
The timing of this development, just days before TCS’s Q2 results, has created additional nervousness among investors who are already wary due to the layoffs and flat stock performance.
Analysts Expect Muted Growth in Q2 FY26
Another worrying signal comes from the expectations of leading brokerage firms. According to reports, six major brokerages expect only about 1% sequential growth in net profit for TCS in Q2 FY26.
This means analysts anticipate just a marginal increase in earnings compared to the previous quarter, reflecting muted demand across key verticals like BFSI (Banking, Financial Services, and Insurance) and retail. Slower client spending, pricing pressure, and project delays have been cited as the main reasons for this subdued outlook.
Such weak growth projections have heightened concerns that TCS, like its peers, may continue to face near-term revenue and margin headwinds despite maintaining operational discipline.
TCS Cancels Q2 Press Conference
In a symbolic and emotional gesture, TCS has called off its Q2 press conference due to the death anniversary of Ratan Tata, the revered patriarch of the Tata Group. While investors were expecting insights from management on strategy, hiring, and business outlook, the cancellation means markets will have to rely solely on the numbers and the accompanying financial statements for clarity.
The move, while understandable from a sentimental perspective, leaves shareholders without a platform to hear directly from company executives at a time when uncertainty is high.
Outlook: A Crucial Quarter for TCS and Its Shareholders
As TCS heads into its Q2 FY26 results, investor expectations are mixed but cautious. Many hope the company will deliver better-than-expected margins or announce strategic initiatives to offset recent negative developments.
However, given the weak brokerage forecasts, the ongoing global IT slowdown, and the recent layoff news, market participants are bracing for a lackluster quarter.
If TCS fails to meet even the modest expectations of a 1% sequential profit increase, the stock could face further downward pressure. Conversely, any positive surprise — either in profit growth, order book expansion, or management commentary — could offer a much-needed boost to investor morale.
For long-term shareholders, the Q2 FY26 results will serve as a crucial indicator of whether TCS can break out of its five-year stagnation and start delivering meaningful returns once again.
