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TCS reported steady Q3 FY26 performance with AI-led growth, stable margins, strong cash flows, and a robust order book. Rising AI revenues, disciplined execution, and continued client investments reinforced the company’s strategy to become an AI-first enterprise.
TCS reports AI-led growth in Q3 FY26
Mumbai: Tata Consultancy Services (TCS) reported a resilient performance for the quarter ended December 31, 2025, driven by AI-led growth, stable margins, strong cash flows, and a robust order book. The company continued to advance its ambition of becoming the world’s largest AI-led technology services provider.
| Particulars | Q3 FY26 |
|---|---|
| Revenue | $7,509 million |
| QoQ Revenue Growth | 0.6% |
| Sequential CC Growth | 0.8% |
| Annualized AI Services Revenue | $1.8 billion |
| AI Revenue QoQ CC Growth | 17.3% |
| Operating Margin | 25.2% |
| Net Income | $1,503 million |
| Net Margin | 20.0% |
| YoY Net Income Growth | 3.1% |
| Cash Flow from Operations | 130.4% of Net Income |
| Total Contract Value (TCV) | $9.3 billion |
| Particulars | Details |
|---|---|
| Dividend per Share | ₹57 |
| Special Dividend | ₹46 per share |
| Record Date | 17 January 2026 |
| Payment Date | 03 February 2026 |
CEO & MD K. Krithivasan highlighted continued momentum from Q2, with AI services reaching $1.8 billion in annualized revenue, underpinned by investments across the AI stack.
COO Aarthi Subramanian emphasized rapid AI adoption, cloud and data-led transformations, and strengthened Salesforce capabilities through acquisitions.
CFO Samir Seksaria pointed to disciplined execution, margin stability, and strong cash conversion. CHRO Sudeep Kunnumal noted that over 217,000 associates now possess advanced AI skills, supporting scalable client delivery.
| Industry | Q3 FY26 Composition (%) | QoQ CC Growth (%) | YoY CC Growth (%) |
|---|---|---|---|
| BFSI | 31.9 | -0.4 | 1.6 |
| Consumer Business | 15.4 | 1.3 | -2.7 |
| Life Sciences & Healthcare | 10.5 | 0.9 | 2.2 |
| Manufacturing | 8.8 | 0.2 | 1.7 |
| Technology & Services | 8.4 | -1.3 | 1.7 |
| Communication & Media | 5.9 | 0.6 | -1.6 |
| Energy, Resources & Utilities | 6.0 | 1.0 | 2.2 |
| Regional Markets & Others | 13.1 | 4.6 | -19.4 |
| Total | 100.0 | 0.8 | -2.6 |
| Geography | Q3 FY26 Composition (%) | QoQ CC Growth (%) | YoY CC Growth (%) |
|---|---|---|---|
| North America | 48.5 | 0.1 | 1.3 |
| Latin America | 2.0 | 4.6 | 1.4 |
| UK | 16.9 | -1.9 | -3.2 |
| Continental Europe | 15.6 | 2.1 | 1.4 |
| Asia Pacific | 8.3 | 1.1 | 3.5 |
| India | 6.1 | 8.0 | -34.3 |
| Middle East & Africa | 2.6 | 3.2 | 8.3 |
| Total | 100.0 | — | — |
With a strong order book, accelerating AI adoption, disciplined financial execution, and a skilled workforce, TCS remains well-positioned to deliver sustainable growth and long-term stakeholder value.
