TCS Q3 FY26 Results: Revenue Growth, AI Push, Dividend Update

Tata Consultancy Services delivered a steady performance in Q3 FY26, supported by consistent demand, strong execution, and a growing focus on artificial intelligence. Even as global technology spending remains cautious, TCS managed to grow revenues, maintain profitability, and strengthen its long-term growth drivers. Although TCS announced its results after market hours, the stock still ended the day on a positive note.

Key financial performance in Q3 FY26

TCS reported revenue from operations of ₹67,087 crore in the December 2025 quarter, growing 4.87 percent year on year. This reflects stable business momentum across key sectors such as BFSI, consumer, healthcare, and manufacturing.

Reported net profit for the quarter stood at ₹10,720 crore, showing a year-on-year decline. This drop was largely due to exceptional items during the quarter and does not indicate weakness in the core business.

After adjusting for these one-time items, net profit came in at ₹13,438 crore, registering a healthy 8.5 percent year-on-year growth. This adjusted number gives a clearer picture of TCS’ operational strength and profitability.

What constant currency growth tells us

During the quarter, TCS recorded a constant currency quarter-on-quarter growth of 0.8 percent. Constant currency growth removes the impact of exchange rate movements. For a global IT company like TCS, this metric helps show the real demand trend. The positive growth indicates that business improved sequentially and growth was not driven only by currency movements.

AI services are becoming a key growth driver

One of the biggest highlights of Q3 FY26 was the growing role of AI in TCS’ business. Annualised AI services revenue reached $1.8 billion during the quarter, growing more than 17 percent quarter on quarter in constant currency terms. This shows that clients are moving beyond pilots and are actively scaling AI use cases.

TCS is not offering AI as a separate product. Instead, it is embedding AI across cloud, data, cybersecurity, and core enterprise services. This integrated approach helps clients improve efficiency and decision-making across their operations. Management has clearly stated its ambition to become the world’s largest AI-led technology services company, backed by a focused five-pillar strategy.

Large deal wins improve revenue visibility

During the quarter, TCS signed deals worth $9.3 billion in total contract value. This strong order book provides good revenue visibility for the coming quarters and reflects continued client confidence in TCS’ capabilities.

The deals were spread across multiple industries and regions. Several long-term partnerships were expanded across insurance, healthcare, retail, and industrial segments. These engagements go beyond traditional IT services and focus on end-to-end transformation, automation, and improved customer experience.

Steady growth across industries and markets

BFSI continued to be the largest contributor to TCS’ revenue, followed by consumer business and life sciences and healthcare. Manufacturing, energy, and utilities also recorded steady growth, supported by higher adoption of digital platforms and AI-led solutions.

Geographically, North America remained the largest market for TCS. Continental Europe and Asia Pacific posted positive growth during the quarter. India delivered strong sequential growth, although year-on-year numbers were impacted by a high base.

Dividend highlights strong cash position

TCS announced a total dividend of ₹57 per share, which includes a special dividend of ₹46 per share. The record date for the dividend is January 17, 2026, and the payment date is February 3, 2026. This reflects strong cash generation and the company’s continued focus on rewarding shareholders.

Bottom line

TCS’ Q3 FY26 results reflect steady business performance in a mixed global environment. The company continued to see stable revenue growth, increased its focus on AI-led services, and maintained financial discipline. With a strong order book and improving traction in AI, TCS remains positioned to navigate near-term challenges while building capabilities for long-term growth in the Indian IT sector.

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