TCS net profit fell 14% in Q3

Revenue growth beat estimates

- SHIVANI SHINDE

Tata Consultancy Services (TCS), India's largest information technology (IT) services player, beat revenue growth estimates for the third quarter (October-December) of FY26, as growth momentum continued on the back of green shoots in banking, financial services and insurance (BFSI), North America, and AI-driven demand.

TCS reported a 13.9 per cent decline in its net profit at ₹10,657 crore for Q3FY26 from ₹12,380 crore in the year-ago quarter. Sequentially, profit declined 11.7 per cent. The company's bottom line was impacted due to restructuring expenses, onetime charges arising from changes in labour codes, and a provision of ₹1,010 crore for a legal claim.

Revenue grew 4.9 per cent in reported terms to ₹67,087 crore in Q3FY26. On a sequential basis, revenue increased 2 per cent.

TCS's revenue performance beat Bloomberg estimates, while profit missed expectations.

According to Bloomberg consensus, revenue was estimated at ₹66,849 crore and net profit at ₹13,005 crore.

The total contract value (TCV) of deals signed during the quarter stood at $9.3 billion, compared with $10 billion

Determined to cross finish line on trade deal: US envoy Gor momentum and the leadership we are gaining in artificial intelligence (AI), we are confident of a good calendar year 2026," he said.