TCS Q3 earnings: Net profit falls 14%; IT firm declares interim dividend, special dividend

Tata Consultancy Services Ltd (TCS) on Monday reported a 14 per cent year-on-year (YoY) fall in its consolidated net profit for the third quarter of the current fiscal. During the quarter under review, profit came at Rs 10,720 crore as against Rs 12,444 crore in the year-ago period.On a quarter-on-quarter basis, profit slipped 11.63% from Rs 12,131 crore in the September 2025 quarter.     

However, the IT bellwether's revenue from operations climbed 5 per cent to Rs 67,087 crore in Q3 FY26 compared to Rs 63,973 crore in the corresponding period last year. On a quarter on quarter basis, revenue grew 2% from Rs 65,799 crore.

Earnings before interest and taxes (EBIT) rose 2% to Rs 16,889 crore in the last quarter against Rs 16,565 crore in the year ago period. EBIT margins for the IT firm were flat at 25.2% in Q3 of the current fiscal.

Operating margins in Q3 came at 25.2% and were stable sequentially. In the third quarter, total contract value (TCV) stood at $9.3 billion. The company reported annualized AI Services revenue at $1.8 billiomn rising 17.3% QoQ in constant currency terms.

 TCS also declared a third interim dividend of Rs 11 per share and a special dividend of Rs 46 per equity share of Rs 1 each of the company. 

"The third interim dividend and the special dividend shall be paid on Tuesday, February 3, 2026, to the equity shareholders of the Company, whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Saturday, January 17, 2026, which is the Record Date fixed for the purpose, " said TCS. 

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.”

The quarterly earnings were released post-market hours today. Earlier in the day, TCS shares settled 0.86 per cent higher at Rs 3235.70.