TCS Refutes $1 Billion M&S Contract Loss Rumors Following Cyberattack Reports

TCS Denies Report of $1 Billion M&S Contract Loss Due to Cyberattack

Tata Consultancy Services (TCS) has officially and strongly denied a UK media report that claimed retail giant Marks & Spencer (M&S) ended a massive $1 billion contract with the IT major following a cyberattack. In a clarification to stock exchanges, TCS labeled the report as "misleading" and "factually inaccurate."

What Did the Report Claim?

A story in The Telegraph suggested that M&S terminated its contract with TCS because of a security breach. The report implied the deal was worth $1 billion and that the cyberattack was the direct reason for its cancellation.

TCS's Point-by-Point Rebuttal

TCS has challenged the report on several key facts:

1. The Contract Value Was Inflated: TCS states the reported $1 billion figure is incorrect. The actual contract in question was far smaller.

2. The Partnership is Still Strong: TCS clarified that it continues to be a strategic partner for M&S, working on "numerous other areas." The disputed contract was just one part of a much larger relationship.

3. The Timing Doesn't Add Up: TCS explained that M&S's decision not to renew the specific service desk contract came after a standard Request for Proposal (RFP) process that began in January 2025. This was months before the cyber incident occurred in April 2025, making a direct link impossible.

4. It Was a Small Piece of Business: The company emphasized that the service desk contract was a minor part of its overall work for the retailer, not a cornerstone $1 billion deal.

Setting the Record Straight on the Cyberattack

TCS directly addressed the cybersecurity allegations:

• No Flaws Found: TCS conducted a full internal security scan and confirmed that no vulnerabilities originated from its systems.

• Not Their Responsibility: The company clarified that it does not provide cybersecurity services to M&S; that duty is handled by a different vendor.

• Two Separate Events: TCS maintains that the end of the service desk contract and the cyberattack on M&S are completely unrelated incidents.

Market Reaction and the Bigger Picture

Following TCS's firm denial, its stock price ticked upwards by nearly 1%, indicating investor confidence in the company's rebuttal.

The situation arose after M&S publicly disclosed it was a victim of a “sophisticated, targeted” cyberattack, which was expected to cost the retailer up to £300 million.

The Bottom Line

TCS has firmly rejected the narrative that it was fired by M&S due to the cyberattack. The company states that the non-renewal of a small, specific contract was a routine business decision made months before the security breach occurred and that its systems were not involved. The long-standing partnership between TCS and Marks & Spencer continues in other strategic areas.