TCS Q3 FY26 Results LIVE Updates: IT major Tata Consultancy Services (TCS) reported a net profit of Rs 10,657 crore in Q3FY26, down 13.92% YoY from Rs 12,380 crore in Q3FY25.
On a sequential basis, the company saw an 11.74% decline from Rs 12,075 crore reported in Q2FY26. Revenue from operations stood at Rs 67,087 crore.
Revenue saw a 4.87% year-on-year increase from Rs 63,973 crore reported in Q3FY25. On sequential basis the company saw an increase of 2.31% from Rs 65,799 crore reported in Q2FY26.
Key highlights
| TCS Q3FY26 | |
| Profit | Rs 10,657 crore |
| Revenue | Rs 67,087 crore |
| Annualized AI Services Revenue | $1.8 billion |
| TCV | $9.3 billion |
| Headcount | 5,82,163 |
| Dividend | Rs 57 per share including Rs 46 per share as special dividend Record date-17 Jan Payment date- 3 Feb |
TCS announces Rs 57 per share dividend
TCS also announced an interim dividend of Rs 11 per equity share along with a special dividend of Rs 46 per share, taking the total dividend payout for the quarter to Rs 57 per share. The company has fixed January 17, 2026 as the record date to determine eligible shareholders, while the dividend will be paid on February 3, 2026.
K Krithivasan, Chief Executive Officer and Managing Director of TCS, 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 annualized revenue, reflecting the significant value we provide to clients through targeted investments across the entire AI stack, from Infrastructure to Intelligence.”
The total contract value (TCV) in Q3FY26 stood at $9.3 billion. Net Income stood at Rs13,438 crore. Annualized AI services revenue came at $1.8 billion; up 17.3% QoQ in Constant Currency terms.
AI-led projects to drive TCS’ international revenue growth in FY26: Elara Capital
Elara Capital highlighted that TCS expects FY26 international revenue to be better than FY25 level, on gradual uptick in demand. "Recovery in international markets is likely to be driven by AI-led short-cycle projects and broad-based AI adoption across geographies. Discretionary spending may improve and offset soft revenue, going forward. Margin levers largely remain intact, supported by pyramid optimization, operational efficiencies, and ongoing workforce restructuring, though headwinds may likely arise from rising attrition," the report noted
TCS Q3 Results LIVE Updates: Headcount falls by over 11,000
The overall headcount was down by 11,151 in Q3FY26 to 5,82,163 employees. TCS had announced to lay off around 12,000 people earlier in 2025 as part of a restructuring exercise. It reported a reduction of 19,755 in the overall staff in September quarter, but hinted that only 6,000 of these were involuntary actions because of the restructuring exercise.
The IT firm reported a one-time statutory impact of Rs 2,128 crore from the new labour codes. The impact primarily stemmed from changes in the definition of wages under the new framework, leading to higher provisions for gratuity amounting to Rs 1,816 crore and long-term compensated absences of Rs 312 crore.
The company added that adjusted profit (excluding one-time impact) grew 8.5% YoY to Rs 13,438 crore
TCS Q3 Results LIVE Updates: TCS order book slips to $9.3 billion
TCS' The company's total order book stood at $9.3 billion in the quarter, down from $10 billion in the previous quarter and a record $10.2 billion in the year-ago period. The firm had announced eight deals in the reporting quarter - the most among India's top-five IT firms - including deals with British food retailer Morrisons and Danish telecom operator Telenor.
TCS Q3 Results LIVE Updates: 'Doubles hiring of higher-skilled freshers,' says CHRO
Sudeep Kunnumal, Chief HR Officer, said “As of this quarter, there are over 217,000 associates with advanced AI skills. We doubled our intake of fresh graduates with higher order skills, rapidly expanding our next-generation talent pool.”
Profit: Rs 10,657 crore (down 13.92% YoY)
Revenue: Rs 67,087 crore up 2% QoQ, 0.8% in CC
Annualized AI Services Revenue: $1.8 billion; up 17.3% QoQ in CC
Operating Margin: 25.2%
Net Income: Rs 13,438 crore, +8.5% YoY
Net Margin: 20.0%; up 40 bps QoQ
Cash flow from Operations: 130.4% of Net Income
TCV: $9.3 billion
Dividend: Rs 57 including Rs 46 per share as special dividend| Record date- 17 January, Payment date- 3 Feburary
TCS Q3 Results LIVE Updates: Strong AI acceleration in Q3FY26: COO Aarthi Subramanian
Aarthi Subramanian, Executive Director - President and Chief Operating Officer, said “We continued to see AI acceleration this quarter. We helped customers identify valuable AI opportunities through Innovation Days and deployed solutions faster with Rapid Builds. Our customers continue to invest in Cloud, Data, Cyber and Enterprise Transformations to build readiness for AI. We further strengthened our Salesforce capabilities with Coastal Cloud acquisition, building on our investment in ListEngage.”
TCS Q3 Results LIVE Updates: Q2 growth momentum extend into Q3FY26: CEO K Krithivasan
K Krithivasan, Chief Executive Officer and Managing Director of TCS, 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 annualized revenue, reflecting the significant value we provide to clients through targeted investments across the entire AI stack, from Infrastructure to Intelligence.”
TCS Q3 Results LIVE Updates: Announces Rs 57 per share dividend
TCS also announced an interim dividend of Rs 11 per equity share along with a special dividend of Rs 46 per share, taking the total dividend payout for the quarter to Rs 57 per share. The company has fixed January 17, 2026 as the record date to determine eligible shareholders, while the dividend will be paid on February 3, 2026.
Revenue saw a 4.87% year-on-year increase to Rs 67,087 crore from Rs 63,973 crore reported in Q3FY25.
On sequential basis the company saw an increase of 1.96% from Rs 65,799 crore reported in Q2FY26.
Tata Consultancy Services (TCS) reported a net profit of Rs 10,657 crore in Q3FY26, down 13.92% YoY from Rs 12,380 crore in Q3FY25.
On a sequential basis, the company saw an 11.74% decline from Rs 12,075 crore reported in Q2FY26.
Revenue from operations stood at Rs 67,087 crore.
TCS Q3 Results LIVE Updates:TCS stock gains nearly 1% in intra-day trade
Ahead of its Q3FY26 results, the share price of TCS closed in the green on Monday, up 0.86% at Rs 3235.70. The stock has gained 6.85% over the last three months; however, it has declined 4.33% over the past six months.
TCS Q3 Results LIVE Updates: Q2FY26 highlights
TCS delivered a resilient Q2FY26 performance with revenue of Rs 65,799 crore, up 3.7% quarter-on-quarter(QoQ) and 2.4% year-on-year(YoY) and 0.8% in constant currency terms.
EBIT margins expanded 70 bps QoQ to 25.2% (excluding severance), supported by strong operational discipline and currency tailwinds. TCV stood at $10 Bn, up 6.5% QoQ and 16% YoY, led by a $647 Mn insurance transformation deal.
Headcount declined by 20,000 to 593,314 due to skill realignment, while voluntary attrition remained stable in the low double digits.
The company continues to step up its AI focus, having trained over 160,000 associates and progressing on sovereign AI infrastructure initiatives.
TCS Q3 Results LIVE Updates: TCS revenue seen at Rs 67,133.4 crore
Deven Choksey said TCS is expected to deliver steady Q3FY26 growth. “We project base-case revenue at Rs 67,133.4 crore for Q3FY26, implying 4.9% YoY growth, supported by sustained deal conversions, AI-led engagements and steady execution. EBITDA is estimated at Rs 18,724.8 crore, with margins expanding to 27.89%, up 127 bps YoY, driven by efficiency gains, improved utilisation and a favourable business mix," Deven Choksey said in its report.
"PAT is forecast at Rs 13,511 crore, reflecting 9.1% YoY growth. Deal momentum remains robust, with TCV expected to be around $ 10 Bn levels. Growth is anticipated to be led by the BFSI and life sciences verticals, with North America and continental Europe showing positive trends,” it added
TCS Q3 Results LIVE Updates: Nuvama expects marginal growth, margin likely to see pressure
Nuvama expects TCS to post marginal growth in Q3FY26. “TCS is likely to deliver 0.5% QoQ constant currency and 0.2% USD revenue growth. Growth is expected to be driven by developed markets, as execution on the BSNL extension deal has not yet commenced,” the Nuvama report noted.
“Margins are likely to decline by around 60 bps QoQ due to the impact of two months of wage hikes. We will closely watch the outlook on the US macro environment and updates on employee restructuring,” it added.
For TCS, Axis Securities Equity Research expects steady revenue growth. “We expect TCS to report 2.6% QoQ topline growth, driven by growth in BFSI, Hi-tech, and cross-currency tailwinds. EBIT margins are expected to decline by 28 bps during the quarter due to the impact of wage hikes, higher investments, and lower working days,” the research analyst said.
Axis Securities Equity Research highlighted key attributes to watch for TCS- (a) deal TCV/pipeline, (b) outlook on business verticals, and (c) the BSNL advance purchase order deal.”
TCS Q3 Results LIVE Updates: Axis Securities sees moderate growth for IT sector
As the IT sector kicks off the Q3 earnings season with TCS and HCLTech, two top IT firms scheduled to report their Q3 results today, Axis Securities Equity Research expects the sector to report moderate growth, with a recovery ahead. “The IT services sector is anticipated to report moderate growth in Q3FY26, primarily due to a lack of improvement in demand, a steady deal pipeline, and uncertainties in macroeconomic conditions such as Trump tariffs and the trade war.”
TCS Q3 Results LIVE Updates: Q2FY26 highlights
In the previous quarter (Q2FY26), TCS had announced an interim dividend of Rs 11 per share. Net profit for the quarter came in at Rs 12,075 crore, while revenue stood at Rs 65,799 crore, up 3.7% quarter-on-quarter.
TCS Q3 Results LIVE Updates: Third interim dividend in focus
TCS, in its BSE filing, said the company will “consider the declaration of a third interim dividend to equity shareholders” along with approving and taking on record the audited consolidated financial results of the company and its subsidiaries.
Greetings! The earnings season for the third quarter of FY26 has begun. Tata Consultancy Services (TCS) is set to announce its results today. Stay tuned to this space on financialexpress.com as we bring you live updates on the company’s performance amid TCS’ layoff plans, its expansion in the data centre business. We will also share insights and expectations from leading brokerage firms on the IT major’s performance. Stay tuned!