AI-led growth and strong order book highlight TCS’ Q3

MUMBAI, January 12, 2026: Tata Consultancy Services (BSE: 532540, NSE: TCS) reported its consolidated financial results according to Ind AS and IFRS, for the quarter ending December 31, 2025.

Highlights of the Quarter Ended December 31, 2025

  • Revenue at $7,509 million, up 0.6% QoQ, Sequential growth: 0.8% in Constant Currency
  • Annualized AI Services Revenue at $1.8 billion; up 17.3% QoQ in Constant Currency
  • Operating Margin at 25.2%; stable sequentially
  • Net Income at $1,503 million, +3.1% YoY | Net Margin at 20.0%; Up 40 bps QoQ
  • Cash flow from Operations at 130.4% of Net Income
  • Q3 Total Contract Value (TCV): US$9.3 billion
  • Dividend per share: Rs 57 including Rs 46 per share as special dividend| Record date 17/01/2026| Payment date 03/02/2026

K Krithivasan, Chief Executive Officer and Managing Director, said “The growth momentum we witnessed in Q2FY26 continued in Q3FY26. We remain steadfast in our ambition to become the world’s largest AI-led technology services company, guided by a comprehensive five-pillar strategy. Our AI services now generate $1.8 billion in annualized revenue, reflecting the significant value we provide to clients through targeted investments across the entire AI stack, from Infrastructure to Intelligence.”

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 Coastal Cloud acquisition, building on our investment in ListEngage.”

Samir Seksaria, Chief Financial Officer, said, "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 AI strategy at speed and scale is central to our transformation into an AI-first enterprise, and delivering long-term value for our stakeholders."

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.”

Q3 FY26 Segment Highlights

Growth by Domain

Analyst Firm Report Type Report Title
Everest PEAK Matrix Private Cloud Services PEAK Matrix® Assessment 2025*
NelsonHall NEAT Advanced Digital Workplace Services 2025*
IDC MarketScape IDC MarketScape: European Human-First Digital Workplace Services 2025 Vendor Assessment*
Gartner Magic Quadrant Magic Quadrant for Data Center Outsourcing Services*
NelsonHall NEAT Quality Engineering 2025*
NelsonHall NEAT Transforming Business Operations with GenAI*
Everest PEAK Matrix Payments Business Process Services (BPS) PEAK Matrix® Assessment 2025*
Everest PEAK Matrix Banking Operations – Services PEAK Matrix® Assessment 2025*
Avasant RadarView CPG Digital Services 2025–2026 RadarView™*

IFRS Financial Statements

Consolidated Statements of Comprehensive Income

For the three-month periods ended Dec 31, 2024, Sep 30, 2025, and Dec 31, 2025

*Excludes exceptional items

(In millions of $, except per share data)

  Three-month period ended Dec 31, 2024 Three-month period ended Sep 30, 2025* Three-month period ended Dec 31, 2025*
Revenue 7,539 7,466 7,509
Cost of revenue 4,613 4,512 4,444
Gross margin 2,926 2,954 3,065
SG & A expenses 1,082 1,075 1,176
Operating income 1,844 1,879 1,889
Other income (expense), net 119 73 103
Income before income taxes 1,963 1,952 1,992
Income taxes 497 482 482
Income after income taxes 1,466 1,470 1,510
Non-controlling interests 8 6 7
Net income 1,458 1,464 1,503
Earnings per share in $ 0.40 0.40 0.42

Consolidated Statements of Financial Position

As of March 31, 2025, and Dec 31, 2025

(In millions of $)

  As of March 31, 2025 As of Dec 31, 2025
Assets
Property and equipment 1,514 1,536
Right-of-use Assets 1,086 1,173
Intangible assets and Goodwill 580 568
Accounts Receivable 5,880 6,245
Unbilled Revenues 1,811 1,816
Invested Funds 5,526 7,129
Other current assets 1,458 1,297
Other non-current assets 1,076 966
Total Assets 18,931 20,730
Liabilities and Shareholders' Equity
Shareholders' Funds 11,337 12,859
Current liabilities 6,202 6,364
Non-current liabilities 1,270 1,385
Non-controlling interests 122 122
Total Liabilities 18,931 20,730