Tata Consultancy Services (TCS) Q3 results: Net profit declines 14% annually to ₹10,657 crore, revenue rises 5%

Tata Consultancy Services (TCS), the country's largest information technology (IT) services company on Monday, January 12, reported net profit of ₹10,657 crore in the third quarter of current financial year (Q3FY26), marking a decline 14% from ₹12,380 crore in the same period last year. On a sequential basis, TCS' net profit declined 11.75% from ₹12,075 crore.

The Mumbai-based company's revenue from operations, however, advanced 5% to ₹67,087 crore from ₹63,973 crore in the year-ago period. On a quarter-on-quarter (QoQ) basis TCS top line grew by 2% and in the constant currency terms revenue rose by 0.8%.

The company’s annualised revenue from Artificial Intelligence (AI) business came in at $1.8 billion, up 17.3% QoQ in constant currency terms.

Americas market remained the largest market for TCS with 50.5% share of business followed by Europe, Asia Pacific and India.

In Q3, TCS earned 31.9% revenue from BFSI business, 15.4% from consumer business and 10.5% from life sciences & healthcare business.

Its operating margin remained stable at 25.2% and its total contract value (TCV) at the end of the third quarter came in at $9.3 billion.

TCS interim dividend

The company announced a total dividend of ₹57 per shares which includes a special dividend of ₹46 per share. The record date for the dividend has been fixed as January 17 and dividend payment date has been fixed as February 3.

“The growth momentum we witnessed in Q2FY26 continued in Q3FY26. We remain steadfast in our ambition to become the world’s largest AI-led technology services company, guided by a comprehensive five-pillar strategy. Our AI services now generate $1.8 billion in annualized revenue, reflecting the significant value we provide to clients through targeted investments across the entire AI stack, from Infrastructure to Intelligence,” said K Krithivasan, Chief Executive Officer and Managing Director of the company.

TCS Q3 deal wins

During the quarter TCS announced a strategic partnership with TPG, a leading global alternative asset management firm, to support the growth of TCS’ AI data centre business, HyperVault.

TCS also signed a definitive agreement to acquire 100% stake in Coastal Cloud, a leading Salesforce Summit partner that specializes in Salesforce Consulting employing 400 seasoned professionals with more than 3,000 multi-cloud certifications.

The company expanded its long standing partnership with Google Cloud and adopted the next-generation agentic AI platform, Gemini Enterprise. This collaboration will empower TCS’ workforce to build advanced agentic AI solutions that redefine Human + AI workflows, TCS said.

TCS was selected by the United Kingdom's National Health Service (NHS) Supply Chain for application development support and maintenance of its core business systems and cloud infrastructure platforms, over a period of 5 years.

TCS will deploy a host of cloud and AI-enabled solutions to modernize NHS Supply Chain’s IT systems and enhance overall operational efficiency.

“Our sustained margin performance and strong cash conversion this quarter, reflects our disciplined execution and financial resilience. Backed by a robust balance sheet, we continue to invest confidently in strategic growth areas. Executing our five-pillar AI strategy at speed and scale is central to our transformation into an AI-first enterprise, and delivering long-term value for our stakeholders," said Samir Seksaria, Chief Financial Officer of the company.

TCS shares ended 1.1% higher at ₹3,243 on the National Stock Exchange ahead of its earnings announcement.