Tata Consultancy Services (TCS) shared that its attrition has increased to 13.8% for Q1 of FY26.
The increase in attrition came even after TCS added about 5,000 new employees to its team in Q1 FY26, bringing its workforce count to a total of 613,069 from 607,979. The attrition for Q4 FY25 was at 13.3%, showcasing an increase between the two quarters. In Q3 FY25, the narration in TCS had stood at 13%, showcasing a steady increase in the company’s attrition by the quarter.
Presently, TCS seems to be focusing on developing the skills of its existing workforce.
“Talent development is core to TCS. In this quarter, our associates invested 15 million hours in building expertise in emerging technologies, enabling them to lead the transformation journey for our customers,” shared Milind Lakkad, Chief Human Resources Officer (CHRO) at TCS. “It is gratifying to note that TCS now has 114,000 people with higher-order AI skills.”
At ₹12,760 crore, TCS’ profit in Q1 FY26 increased year-on-year (YoY) by 6%. In contrast, the company’s revenue decreased YoY by 3.1% to ₹63,437 crore.
“The continued global macro-economic and geo-political uncertainties caused a demand contraction. On the positive side, all the new services grew well. We saw robust deal closures during this quarter. We remain closely connected to our customers to help them navigate the challenges impacting their business, through cost optimisation, vendor consolidation and AI-led business transformation,” stated K Krithivasan, Chief Executive Officer (CEO) and Managing Director at TCS.
