| Metric | Value (₹ Cr) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 67.1K | 2.0% | 4.9% |
| Total Income | 68.2K | 2.3% | 4.6% |
| Expenditure | 50.7K | 2.6% | 4.5% |
| PBT | 14.1K | 12.4% | 15.5% |
| Net Profit | 10.7K | 11.6% | 13.8% |
| OPM | 22.18% | 3.42pp | 0.59pp |
| NPM | 15.72% | 2.48pp | 3.36pp |
| EPS | 29.45 | 11.8% | 13.9% |
Tata Consultancy Services Reports Q3 FY26 Results: Al-led Growth and Strong Order Book Highlight
12 Jan 2026 · 12 Jan, 4:06 pm
Summary
Tata Consultancy Services (TCS) has reported its Q3 FY26 results according to Ind AS and IFRS. The company saw a revenue of X67,087 crore, up 2.0% QoQ. The annualized Al Services Revenue stood at $1.8 billion, up 17.3% QoQ in Constant Currency. The operating margin was at 25.2%, and net income was at 13,438 crore, up 8.5% YoY. Q3 Total Contract Value (TCV) was US$9.3 billion. The company also announced a strategic partnership with TPG to support the growth of its Al data center business, HyperVault.
Key Highlights
- 1
Revenue at X67,087 crore, up 2.0% QoQ
- 2
Annualized Al Services Revenue at $1.8 billion; up 17.3% QoQ in Constant Currency
- 3
Operating Margin at 25.2%; stable sequentially
- 4
Net Income at 13,438 crore, +8.5% YoY | Net Margin at 20.0%; up 40 bps QoQ
- 5
Q3 Total Contract Value (TCV): US$9.3 billion
- 6
Strategic partnership with TPG to support the growth of TCS’ Al data center business, HyperVault
Management Comments
K Krithivasan
The growth momentum we witnessed in Q2FY26 continued in Q3FY26. We remain steadfast in our ambition to become the world’s largest Al-led technology services company, guided by a comprehensive five-pillar strategy. Our Al services now generate $1.8 billion in annualized revenue, reflecting the significant value we provide to clients through targeted investments across the entire Al stack, from Infrastructure to Intelligence.
Aarthi Subramanian
We continued to see Al acceleration this quarter. We helped customers identify valuable Al 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 Al. We further strengthened our Salesforce capabilities with Coastal Cloud acquisition, building on our investment in ListEngage.
Samir Seksaria
Our sustained margin performance and strong cash conversion this quarter, reflects our disciplined execution and financial resilience. Backed by a robust balance sheet, we continue to invest confidently in strategic growth areas. Executing our five-pillar Al strategy at speed and scale is central to our transformation into an Al-first enterprise, and delivering long-term value for our stakeholders.
Sudeep Kunnumal
Our associates are at the heart of our transformation into an Al- first enterprise. As of this quarter, there are over 217,000 associates with advanced Al skills, directly powering client success at scale. We doubled our intake of fresh graduates with higher order skills, rapidly expanding our next-generation talent pool. The passion and commitment our associates show in mastering next-gen capabilities gives us the confidence to innovate responsibly and deliver sustainable value as Al reshapes the services landscape.
Informational and educational content only. Not investment advice.