Tata Consultancy Services (TCS) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue reached INR 67,087 crore (INR 670,870 Mn), up 2% QoQ and 4.9% YoY; USD revenue at $7,509 Mn, up 0.6% QoQ but down 0.4% YoY; constant currency growth was 0.8% sequentially.

• Operating margin held steady at 25.2% (excluding one-offs/exceptional items); net income margin was 20%.

• TCV for Q3 was $9.3 billion, with North America contributing $4.9 billion and BFSI $3.8 billion.

• AI services annualized revenue hit $1.8 billion, growing 17.3% quarter-on-quarter in constant currency.

• Interim dividend of INR 11/share and special dividend of INR 46/share declared, totaling INR 57/share.

Financial highlights

• Consolidated revenue for Q3 FY26 was INR 67,087 crore, up from INR 63,973 crore in Q3 FY25.

• Net profit for Q3 FY26 was INR 10,720 crore; EPS up 8.5% YoY to 37.14.

• Net cash from operations was $1.6 billion (130.4% of net income); invested funds at $7.1 billion.

• Gross margin improved to 40.8% in Q3 FY26 from 39.6% in Q2 FY26.

• Free cash flow at INR 124,230 Mn; total cash and investments at INR 640,970 Mn.

Outlook and guidance

• Management expects continued growth in international markets and BFSI as seasonality effects subside.

• AI and data services expected to drive growth across all industry segments.

• Order book for FY26 projected at $38–39 billion, supporting growth into FY27.

• Margins targeted to move closer to the traditional 26–28% band.

• Company continues to monitor regulatory changes, especially new Labour Codes.