Tata Consultancy Services (TCS) reported strong financial results for Q3 FY26, highlighted by significant growth in AI services. Revenue reached ₹67,087 crore, up 2.0% QoQ. Annualized AI Services revenue stood at $1.8 billion, a 17.3% QoQ increase. The company emphasized its commitment to AI-led transformation and innovation, with a focus on delivering long-term value to stakeholders.
Key Financial Highlights
TCS announced its consolidated financial results for Q3 FY26, showcasing robust performance:
- Revenue: ₹67,087 crore, a 2.0% increase QoQ (0.8% in Constant Currency).
- AI Services Revenue: Annualized revenue of $1.8 billion, up 17.3% QoQ in Constant Currency.
- Operating Margin: Maintained at 25.2%.
- Net Income: ₹13,438 crore, up 8.5% YoY. Net Margin at 20.0%.
- Total Contract Value (TCV): US$9.3 billion.
- Dividend: ₹57 per share, including a special dividend of ₹46.
Growth by Industry
Here’s a look at YoY growth by industry segment:
- BFSI: 1.6% growth.
- Consumer Business: 2.7% growth.
- Life Sciences & Healthcare: 2.2% growth.
- Manufacturing: 1.7% growth.
- Technology & Services: 1.7% growth.
- Communication & Media: -1.6% decline.
- Energy, Resources and Utilities: 2.2% growth.
Key Strategic Partnerships and Wins
TCS continues to strengthen its position through strategic collaborations and key project wins:
- Partnership with TPG to bolster TCS’ AI data center business, HyperVault.
- Acquisition of Coastal Cloud, a Salesforce Summit partner.
- Expansion of its partnership with Google Cloud, adopting Gemini Enterprise.
- Expanded partnership with ABB to modernize ABB’s global hosting operations.
- Selected by the National Health Service (NHS) Supply Chain for application development.
- Expansion of partnership with Aviva.
- Multi-year agreement with Canada Life.
- Partnered with Cathay to manage platform and digital workplace infrastructure.
- Expansion of partnership with Morrisons, a UK supermarket chain.
Focus on Innovation
TCS is focused on integrating AI across its operations:
- Over 217,000 associates with advanced AI skills.
- Launch of an AI Experience Zone and Design Studio in London.
Source: BSE
