TCS shares gain as JPMorgan upgrades stance on IT stock
TCS share price: Despite a 24.6% decline this year, TCS is projected to recover with improved earnings in FY26.
- Aug 25, 2025,
- Updated Aug 25, 2025 10:08 AM IST
Shares of Tata Consultancy Services (TCS) rose nearly 2.5% on Monday after global brokerage JPMorgan's upgraded the stock from "neutral" to "overweight. It raising the IT stock's target price to ₹3,800 per share from ₹3,650. This implies a potential upside of 24.4% from the previous close. TCS, despite facing challenges, retains strong client engagement and a robust order book, as noted by CEO K Krithivasan, who remains optimistic about the medium to long-term growth of the company. The stock gained 2.52% to Rs 3132.75 in early deals on Monday. Market cap of TCS rose to Rs 11.29 lakh crore.
The IT stock has fallen 24.6% year-to-date, underperforming the Nifty by 29% and the Nifty IT index by 6%. The decline is attributed to earnings revisions amid deal deferrals and conservative client spending.
However, JPMorgan is optimistic about a growth recovery in the latter half of FY26. These recommendations highlight mixed expectations for TCS among analysts, indicating a cautious stance towards its stock performance. The company's ability to navigate market dynamics is being closely watched by investors.
JPMorgan has revised growth estimates, anticipating a 0% international constant currency growth in FY26, rising to 5% in FY27. The brokerage also foresees margin increases by 55 basis points in FY26 and 57 in FY27, potentially boosting earnings per share by 2% to 3% over the next three years.
TCS shares currently trade at a 19.7x two-year forward price-to-earnings multiple, which is below the five-year average. Despite current hurdles, the company is expected to benefit from positive shifts in business sentiment, aligning with TCS's optimistic outlook.
Shares of Tata Consultancy Services (TCS) rose nearly 2.5% on Monday after global brokerage JPMorgan's upgraded the stock from "neutral" to "overweight. It raising the IT stock's target price to ₹3,800 per share from ₹3,650. This implies a potential upside of 24.4% from the previous close. TCS, despite facing challenges, retains strong client engagement and a robust order book, as noted by CEO K Krithivasan, who remains optimistic about the medium to long-term growth of the company. The stock gained 2.52% to Rs 3132.75 in early deals on Monday. Market cap of TCS rose to Rs 11.29 lakh crore.
The IT stock has fallen 24.6% year-to-date, underperforming the Nifty by 29% and the Nifty IT index by 6%. The decline is attributed to earnings revisions amid deal deferrals and conservative client spending.
However, JPMorgan is optimistic about a growth recovery in the latter half of FY26. These recommendations highlight mixed expectations for TCS among analysts, indicating a cautious stance towards its stock performance. The company's ability to navigate market dynamics is being closely watched by investors.
JPMorgan has revised growth estimates, anticipating a 0% international constant currency growth in FY26, rising to 5% in FY27. The brokerage also foresees margin increases by 55 basis points in FY26 and 57 in FY27, potentially boosting earnings per share by 2% to 3% over the next three years.
TCS shares currently trade at a 19.7x two-year forward price-to-earnings multiple, which is below the five-year average. Despite current hurdles, the company is expected to benefit from positive shifts in business sentiment, aligning with TCS's optimistic outlook.