Tata Consultancy Services Ltd. Q3 FY26 Earnings

Tata Consultancy Services delivered strong Q3 FY26 results with revenue of ₹67,087 crore, growing 2.0% QoQ and 4.9% YoY, while maintaining stable operating margins at 25.2%. The company secured $9.3 billion in Total Contract Value, including one mega deal in BFSI North America. AI services emerged as a major growth driver, reaching $1.8 billion in annualized revenue with 17.3% QoQ growth, powered by a shift from pilots to ROI-led scaled implementations. The company trained 217,000+ employees in AI skills (3X YoY increase) as part of its five-pillar strategy to become the world's largest AI-led technology services company. Management expressed strong confidence in CY2026, citing robust deal momentum with order book trending toward a record $38-39 billion for the full year. The Board declared ₹11 interim dividend plus ₹46 special dividend per share. Strong free cash flow generation of $1.4 billion and a solid balance sheet support continued strategic investments in AI and growth capabilities.

Key Highlights

• Revenue grew 2.0% QoQ and 4.9% YoY to ₹67,087 crore with operating margins stable at 25.2%; EPS increased 8.5% YoY
• AI services reached $1.8 billion annualized revenue, growing 17.3% QoQ as customers shifted from pilots to production deployments
• Secured $9.3 billion TCV including one mega deal; order book trending to record $38-39 billion for full year
• BFSI vertical delivered $3.8 billion TCV (up $600M QoQ and YoY) including the mega deal in North America
• Board declared ₹11 interim dividend plus ₹46 special dividend per share; generated $1.4 billion in free cash flow