TCS Q3 results: AI services achieved $1.8 billion annualised revenue; check other key highlights

Shares of TCS closed in green, rebounding from intraday lows ahead of Q3 earnings on Monday. The company announced strong topline growth with a ₹11 interim dividend and ₹46 per share as a special dividend. In addition, the company also accounted for the new wage and labour code, resulting in a drop in the bottom line. Here are key highlights from the Q3FY26 earnings report.

Steady topline

The company’s consolidated revenue for the quarter rose 2% QoQ to ₹67,087 crore and 0.8% in constant currency terms. The revenue environment remained mixed, being a seasonally weak quarter with a lower renewal rate. Additionally, the BFSI space remained the major revenue driver for the quarter.

AI contribution increases

Growing contribution from the AI segment continued to remain a key trigger as the company aims to become the world’s leading AI-led enterprise solutions provider. The AI services revenue stood at $1.8 billion on an annualised basis, up 17.3% QoQ in the constant currency.

Operational metrics

The company’s operating margin stood at 25.2%, stable sequentially, along with an 8.5% jump in the net income at ₹13,438 crore. The company’s total contract value for the quarter stood at $9.3 billion, with AI contributing $1.8 billion of that.

Segmental performance

The segmental performance remained steady across the board for the quarter, with 0.4% to 4% sequential growth. BFSI, which contributes 31.9% of the total revenue, declined 0.9% QoQ and 1.6% YoY. The consumer business and healthcare business witnessed 1.3% and 0.9% QoQ growth, respectively.

Regional performance

At the regional level, North America continued to grow steadily during the quarter, by contributing 48.5% of the overall revenue, a little less than the previous quarter at 48.8%. Latin America and Continental Europe saw sequential growth of 4.6% and 2.1%, while the UK saw a 1.9% contraction. Asia Pacific, MEA and Indian all grew in the range of 1% to 8% sequentially.

Management Commentary

K Krithivasan, Chief Executive Officer and Managing Director, said, “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 annualised revenue, reflecting the significant value we provide to clients through targeted investments across the entire AI stack, from Infrastructure to Intelligence.”