TCS to take additional $70 mn charge after US Supreme Court rejects appeal in DXC case

Tata Consultancy Services (TCS) on Tuesday said it will make an additional provision of $70 million in the first quarter of FY27 after the US Supreme Court declined to review a lower court ruling in a long-running trade secrets dispute with Computer Sciences Corporation (CSC), now part of DXC Technology.

In a regulatory filing, the country's largest IT services company said the United States Supreme Court denied its petition for a writ of certiorari on June 15, 2026, effectively leaving intact the judgment of the United States Court of Appeals for the Fifth Circuit.

"The Company has already provided USD 150 million in relation to this matter in the books of accounts in accordance with applicable accounting standards and will make necessary provision now for the incremental amount of USD 70 million towards damages, interest and legal cost, as a one-time exceptional expense, in Q1 FY2027," TCS said.

The development marks the latest setback for TCS in the legal dispute initiated by CSC, which has since merged with DXC Technology, over allegations of misappropriation of trade secrets.