TCS Q3 Results FY 2026 Highlights: Net profit drops 14% YoY to ₹10,657 crore; announces dividend of ₹57 per share

The company’s total order book reached $9.3 billion in the quarter, declining from $10 billion in the previous quarter and $10.2 billion a year earlier.

During the period, the firm secured eight deals, including contracts with British retailer Morrisons and Danish telecom operator Telenor.

Sudeep Kunnumal, Chief HR Officer, said, “Our associates are at the heart of our transformation into an AI-first enterprise. As of this quarter, there are over 217,000 associates with advanced AI 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 AI reshapes the services landscape.”

Aarthi Subramanian, Executive Director – President and Chief Operating Officer, said, “We continued to see AI acceleration this quarter. We helped customers identify valuable AI 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 AI. We further strengthened our Salesforce capabilities with the Coastal Cloud acquisition, building on our investment in ListEngage.”

AI-led technology spending drove growth for the Tata Group firm during a seasonally weak quarter. In its earnings filing, the company reported annualised AI services revenue of $1.8 billion, marking a 17.3% quarter-on-quarter increase in constant currency terms.

At its investor day presentation last month, TCS had said its AI business stood at $1.5 billion on an annualised basis, accounting for around 5% of the company’s annual revenue.

TCS said its net margin stood at 20% during the third quarter of FY26, a growth of 40 bps QoQ and 60 bps.

Along with the December quarter numbers, the Tata Group company also announced a total dividend payout of ₹57 per share, according to an exchange filing on Monday, January 12, 2026.

The company announced a combination of a third interim dividend of ₹11 per share and a special dividend of ₹46 per share, each with a face value of Re 1.

The company has also set Saturday, January 17, 2026, as the record date to determine eligible shareholders for the dividend payment. The dividend will be paid on Tuesday, February 3, 2026, to the company’s equity shareholders.

TCS reported a consolidated net profit of ₹10,657 crore for the quarter ended December, marking a % decline from ₹12,380 crore reported in the same period last year.

Its consolidated revenue from operations during the quarter stood at ₹67,087 crore, compared with ₹63,973 crore a year ago, reflecting a growth of 5% and beating the analysts’ estimates.

Axis Direct it expects TCS’s topline to grow 2.6% quarter-on-quarter, driven by steady growth in the BFSI and hi-tech verticals, along with favourable cross-currency tailwinds. However, the brokerage expects margins to decline by 28 basis points sequentially due to the impact of wage hikes, higher investments, and fewer working days during the quarter.

The broekerage added that key monitorables include the company’s deal pipeline, commentary across business verticals, and management’s outlook on the BSNL advance purchase order.

TCS Q3 Results LIVE: TCS is expected to post a 0.2% QoQ growth in its USD revenue, which is led by growth in BFSI and hi-tech verticals, according to estimates by Systematix Institutional Equities. It expects an EBIT margin of 25.3%, a 14 bps uptick QoQ, factoring in 2 month’s impact of wage hike and furloughs offset by the benefit from currency tailwinds, pyramid optimization, and AI-led productivity gains.

TCS Q3 revenue is expected to rise 1.7% to ₹66,941 crore from ₹65,799 crore, QoQ, while revenue in dollar terms is estimated to grow 0.2% to $7,479 million from $7,466 million, QoQ. The IT major’s net profit is expected to jump 7.7% to ₹13,010 crore from ₹12,075 crore, QoQ. EBIT is seen up 2.3% to ₹16,946 crore from ₹16,565 crore, while EBIT margin is expected to improve by 14 basis points (bps) to 25.3% from 25.2%, QoQ, as per estimates by Systematix Institutional Equities.

TCS Q3 Results LIVE: TCS share price is shaping a well-defined 27-week cup and handle formation, signaling prolonged consolidation rather than trend damage. The handle has developed in a flag-like structure, reflecting controlled profit booking and strong absorption near the upper end of the base, said Anshul Jain, Head of Research at Lakshmishree Investments.

Price action remains tight, suggesting sellers are losing momentum as demand stabilizes. Moving averages are flattening and beginning to align beneath price, improving the setup’s durability. If results come in non-negative, the structure favors a momentum release rather than a breakdown. A confirmed breakout from the handle can trigger a fresh upside leg toward the ₹3,600 zone. Risk–reward remains attractive while the handle holds, with invalidation only if price slips decisively below the handle base. The setup points to readiness, not exhaustion, he added.

TCS Q3 Results LIVE: TCS share price traded marginally higher ahead of Q3 results today. The Tata Group stock has remained flat in the past one month and has risen 6% in three months. TCS shares have declined more than 24% in one year and fallen over 3% in three years.

TCS Q3 Results LIVE: TCS Q3 results are expected to reflect stability rather than strong growth, with revenues likely to grow in low single digits year-on-year (YoY) and sequential performance remaining muted due to continued weakness in global discretionary IT spending and cautious client decision-making, especially in the US and Europe, according to Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities.

“Margins are expected to remain resilient to marginally improve, supported by cost optimization, rupee depreciation, and stable utilization, partially offset by wage pressures and ongoing investments in AI and digital capabilities. While near-term growth visibility remains limited, deal pipeline commentary, large deal wins, and management outlook on demand recovery will be key stock drivers. Overall medium term outlook remains muted,” Tapse added.

TCS Q3 Results LIVE: Ahead of Q3 results, TCS shares should be traded as an event-risk stock rather than a pure directional bet, said Harshal Dasani, Business Head, INVasset PMS. Historically, TCS does not deliver large pre-result moves; volatility typically emerges only after numbers and, more importantly, management commentary. Into results, implied volatility usually prices in uncertainty around demand commentary, making leveraged futures positions risky.

From a fund manager’s lens, any short-term trade should be size-controlled, with a preference for strategies that cap downside risk, as post-result reactions in large IT names often normalise once the initial headline-driven move fades, said Dasani.

TCS Q3 Results LIVE: On TCS Q3 results expectations, the market is less focused on absolute Q3 growth and more on signals of stabilisation. Revenue growth is expected to remain modest in constant currency terms, reflecting cautious client spending, particularly in discretionary technology budgets. Margins will be closely tracked, given ongoing wage costs, currency movements, and utilisation trends, though large negative surprises are not anticipated, said Harshal Dasani, Business Head, INVasset PMS.

The key swing factor will be commentary on deal pipelines, BFSI demand, and early indicators for calendar 2026 budgets. Any improvement in order inflows or confidence on demand recovery can outweigh near-term softness in numbers. For investors, this quarter is about forward visibility, not backward-looking performance, he added.

TCS Q3 Results LIVE: Ltd. Ahead of TCS Q3 results, investors should avoid taking big risks and should not try to guess the outcome. Most forecasts show only modest or muted growth in revenue and profit this quarter, so expectations are neither very strong nor very weak. Positions should be kept small with proper stop-loss because some volatility is expected, said Dr. Ravi Singh, Chief Research Officer from Master Capital Services.

He advises short-term traders to wait for the results and then trade in the direction the stock moves as strong quarterly results can lead to a sharp upside, while weak or even average numbers can trigger selling pressure. However, TCS remains fundamentally strong, so long-term investors can use any major decline after results as a good buying opportunity.

TCS Q3 Results LIVE: Key areas to watch out for in TCS Q3 results include management commentary on demand trends, visibility on deal ramp-ups, performance across key verticals, deal total contract values (TCVs), and the status of the overall pipeline. Further attention will be on margin outlook, updates on generative AI-led deal traction, and diversification across industries and geographies, with BFSI, hi-tech, and regional markets remaining critical monitorables, said Seema Srivastava, Senior Research Analyst at SMC Global Securities.

TCS Q3 Results LIVE: TCS Q3 results are expected to be largely flat, driven by a resilient quarterly performance with muted sequential revenue growth amid rupee depreciation and cautious client spending, even as demand for long-term digital transformation remains intact. Sequential margins are likely to remain stable, supported by medium-term tailwinds such as normalization in attrition, improved utilization, and pricing discipline. Additionally, steady deal execution and robust contracting activity could provide some support to the company’s overall financial performance, said Seema Srivastava, Senior Research Analyst at SMC Global Securities.

The quarter is expected to highlight TCS’ continued focus on cloud migration, artificial intelligence, data analytics, and cyber security, as enterprises increasingly prioritise efficiency, automation, and operational resilience in their technology roadmaps, she added.

TCS Q3 Results LIVE: TCS is expected to report 2.6% sequential revenue growth at ₹67,526 crore in Q3FY26, driven by growth in BFSI, Hi-tech, and cross-currency tailwinds. The company’s net profit is expected to rise 8.5% quarter-on-quarter (QoQ) to ₹13,163 crore from ₹12,131 crore, according to estimates by Axis Securities.

TCS Q3 Results LIVE: The Indian IT sector is expected to report moderate earnings growth during the October-December 2025 quarter, primarily due to seasonal headwinds, lack of a meaningful improvement in demand, a steady deal pipeline, and ongoing macroeconomic uncertainties such as Trump tariffs and trade tensions.

TCS Q3 Results LIVE: TCS board will also consider declaration of third interim dividend to the equity shareholders along with the Q3 results today. TCS dividend record date has been fixed on January 17, 2026, Saturday, to determine the eligibility of shareholders for the payment of the interim dividend.

TCS Q3 Results LIVE: Tata Consultancy Services (TCS), the largest IT services company in India, will kick start the earnings season and report its Q3 results today. The meeting of the board of directors of TCS is scheduled to take place today, 12 January 2026, to announce the financial results for the third quarter of FY26.