TCS Reports Q3 FY26 Revenue of ₹67,087 Crore, Announces Key Partnerships
Filing Summary
Tata Consultancy Services Ltd (TCS) reported consolidated revenue of ₹67,087 crore for Q3 FY26, marking a 2.0% increase quarter-on-quarter. The company highlighted an annualized AI services revenue of $1.8 billion, reflecting a 17.3% growth in constant currency. TCS announced several strategic partnerships, including with TPG for its AI data center business and the acquisition of Coastal Cloud. The quarter also saw a total contract value of $9.3 billion. TCS declared a dividend of ₹57 per share, with a special dividend of ₹46. The record date is January 17, 2026, and payment is scheduled for February 3, 2026.
Tata Consultancy Services Ltd (TCS) reported its financial results for the quarter ending December 31, 2025. The company achieved a consolidated revenue of ₹67,087 crore, representing a 2.0% increase from the previous quarter. The operating margin remained stable at 25.2%, and the net income was ₹13,438 crore, reflecting an 8.5% year-on-year increase. TCS also reported a net margin of 20.0%, up 40 basis points quarter-on-quarter. The cash flow from operations was 130.4% of net income.
The company announced an annualized AI services revenue of $1.8 billion, which grew by 17.3% in constant currency. The total contract value (TCV) for the quarter was $9.3 billion. TCS declared a dividend of ₹57 per share, including a special dividend of ₹46 per share. The record date for the dividend is January 17, 2026, with payment scheduled for February 3, 2026.
TCS highlighted several strategic initiatives during the quarter. The company announced a partnership with TPG to support the growth of its AI data center business, HyperVault. This partnership aims to build AI-ready infrastructure with a capacity exceeding a gigawatt. TCS also signed an agreement to acquire a 100% stake in Coastal Cloud, a Salesforce Summit partner, enhancing its Salesforce capabilities. Additionally, TCS expanded its partnership with Google Cloud by adopting the Gemini Enterprise AI platform.
The company outlined its operational focus, including the expansion of its partnership with a global hyperscaler through a multi-year deal. TCS will leverage Google Cloud to deliver a NextGen service model. The company also engaged with a North American software company to enhance platform adoption and minimize churn through AI-driven solutions. TCS continued its collaboration with ABB to modernize hosting operations and with the NHS Supply Chain for IT system modernization.
The quarter saw TCS expanding its partnerships with Aviva and Canada Life for policy administration and IT services, respectively. The company also partnered with Cathay for digital workplace infrastructure management and with a North American semiconductor company for application support. TCS continued its collaboration with a global industrial logistics leader to transform its IT landscape post de-merger.
In the context of market relevance, TCS’s strategic moves align with its ambition to become a leading AI-led technology services company. The partnerships and acquisitions aim to enhance TCS’s capabilities in AI, cloud, and digital transformation services. The company’s focus on AI-driven solutions reflects the growing demand for advanced technology services across various industries.
TPG is a global alternative asset management firm that focuses on supporting companies in achieving growth through strategic investments. The partnership with TCS is expected to enhance the capabilities of TCS’s AI data center business, HyperVault.
Tata Consultancy Services Ltd (TCS) is a global leader in IT services, consulting, and business solutions. The company focuses on delivering digital transformation and technology services to organizations worldwide. TCS is committed to innovation and excellence, leveraging its expertise to help clients navigate the evolving technology landscape.