Tata Consultancy Services (TCS) reported revenue of ₹67,087 crore in Q3 FY26, a 2.0% sequential increase in reported currency. Constant currency revenue grew by 0.8%. AI services are a major driver, generating US$1.8 billion in annualized revenue with 17.3% QoQ growth. The company secured deals worth US$9.3 billion, emphasizing its AI-first strategy.
Financial Highlights for Q3 FY26
Tata Consultancy Services (TCS) announced its financial results for the third quarter of fiscal year 2026. Key highlights include:
- Revenue: TCS delivered ₹67,087 crore in revenue.
- Growth: Revenue grew by 2.0% sequentially in reported currency and 4.9% year-over-year.
- Constant Currency Growth: Revenue grew by 0.8% sequentially in constant currency.
- Margins: Operating margins stood at 25.2%, remaining stable sequentially (excluding one-offs).
AI-Driven Growth and Strategy
TCS is focused on becoming the world’s largest AI-led technology services company. Key achievements in this area include:
- AI Services Revenue: Annualized AI revenue reached US$1.8 billion, growing at 17.3% QoQ in constant currency.
- AI Workforce: The company now has over 217,000 employees with higher-order AI skills, a 3X increase over last year.
- AI Innovation: TCS is democratizing access to AI tools through initiatives like “AI Friday Hackathons.”
Key Deal Wins
TCS secured several large deals across markets and industries, demonstrating strong deal momentum. Key wins include:
- Total Contract Value (TCV): Overall TCV reached US$9.3 billion.
- BFSI TCV: BFSI sector TCV was at US$3.8 billion.
- Consumer Business TCV: Consumer Business TCV reached US$1.4 billion.
- North America TCV: North America TCV stood at US$4.9 billion, including one mega deal.
Vertical Performance
Performance across key industry verticals varied in Q3 FY26:
- BFSI: Showed good growth despite seasonality and furloughs, TCV of US$3.8 billion.
- Consumer Business Group: Saw sequential growth, led by Retail and Travel.
- Life Sciences & Healthcare: Experienced good growth momentum.
- Technology Software and Services: De-grew, due to seasonality.
- ERU: Posted strong growth, driven by investments in renewable energy.
Strategic Investments and Acquisitions
TCS is actively investing in strategic partnerships and acquisitions to strengthen its capabilities:
- TPG Partnership: Announced a US$1 billion equity partnership with TPG for AI data center infrastructure.
- Coastal Cloud Acquisition: Acquired Coastal Cloud to strengthen Salesforce and AI consulting services.
Workforce and Talent Development
TCS is committed to building a high-performance workforce with future-ready skills:
- Global Headcount: The global headcount stands at 582,163, with associates from 149 nationalities and 35.1% women.
- Learning Hours: 51.2 million learning hours have been completed year-to-date.
- Competencies Acquired: 3.8 million competencies have been acquired year-to-date.
- Attrition: LTM voluntary attrition in IT Services stands at 13.5%.
Source: BSE
