TCS Q3 Results: AI Growth Amid Profit Pressures

TCS Q3 FY26 Newsletter

Tata Consultancy Services (TCS), India’s largest IT services firm, announced its Q3 FY26 earnings, balancing steady revenue growth with significant one-time charges. Despite profit pressures, the company continues to accelerate its AI-led transformation.

Key Highlights:

• Net Profit: ₹10,657 crore, down 14% YoY due to exceptional charges.
• Revenue: ~₹67,000 crore, up 5% YoY, reflecting resilient demand.
• AI Services: Annualized revenue at $1.8 billion, supported by over 217,000 associates trained in advanced AI skills.
• Order Book: Robust at $9.3 billion, indicating strong deal momentum.
• Exceptional Items: ₹21.28 billion in charges, including ₹10.10 billion from new labour codes and legal claims.
• Dividend: Interim dividend of ₹11 per share and special dividend of ₹46 per share.
• Strategic Moves: Acquisition of Coastal Cloud and new data centre investments, reinforcing TCS’s ambition to lead in AI-driven tech services.

TCS’s Q3 results highlight a dual narrative: near-term profit pressures from regulatory and legal costs, and long-term growth driven by AI adoption and strong deal wins. The company’s AI-first strategy positions it well for sustained transformation despite short-term challenges.

Sources: LiveMint, Moneycontrol, Economic Times, NDTV Profit