TCS Posts Rs 670.87 Bn Q3 Revenue, AI Services Surge

16 Jan 2026 CW Team

Tata Consultancy Services reported its consolidated financial results under Ind AS and IFRS for the quarter ended December 31, 2025, posting revenue of Rs 670.87 billion, up 2.0 per cent quarter-on-quarter. Sequential growth stood at 0.8 per cent in constant currency terms.

Operating margin remained stable at 25.2 per cent, while net income rose 8.5 per cent year-on-year to Rs 134.38 billion. Net margin improved by 40 basis points sequentially to 20.0 per cent, supported by strong execution and cash conversion, with operating cash flow at 130.4 per cent of net income. Total Contract Value (TCV) for the quarter stood at $9.3 billion.

AI services continued to be a key growth driver, with annualised AI services revenue reaching $1.8 billion, reflecting 17.3 per cent quarter-on-quarter growth in constant currency. The company also announced a dividend of Rs 57 per share, including a special dividend of Rs 46 per share, with a record date of January 17, 2026 and payment scheduled for February 3, 2026.

K Krithivasan, Chief Executive Officer and Managing Director, said the growth momentum seen in the previous quarter continued, underpinned by a five-pillar strategy aimed at building the world’s largest AI-led technology services company.

Aarthi Subramanian, Executive Director – President and Chief Operating Officer, noted increased AI adoption, alongside continued client investments in cloud, data, cyber and enterprise transformation, supported by recent capability additions.

Samir Seksaria, Chief Financial Officer, highlighted disciplined execution, resilient margins and a strong balance sheet, while Sudeep Kunnumal, Chief HR Officer, said the company now has over 217,000 associates with advanced AI skills, strengthening its AI-first transformation and long-term talent strategy.

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