Tata Consultancy Services announced its Q3FY26 quarterly results for the quarter ended December 31, 2025, showcasing resilient performance despite facing significant exceptional charges. The IT services giant reported consolidated revenue of ₹67,087 crore and declared substantial dividend payouts for shareholders.

Financial Performance Overview

The company's consolidated financial results demonstrate steady growth in core operations. Total income for Q3FY26 reached ₹68,205 crore, comprising revenue from operations of ₹67,087 crore and other income of ₹1,118 crore.

For the nine-month period ended December 31, 2025, consolidated revenue stood at ₹1,96,323 crore compared to ₹1,90,845 crore in the corresponding period of the previous year, representing a growth of 2.87%.

Dividend Declaration

The Board of Directors declared a third interim dividend of ₹11.00 per equity share and a special dividend of ₹46.00 per equity share, totaling ₹57.00 per share. The dividend will be paid on February 3, 2026, to shareholders whose names appear on the register as of the record date of January 17, 2026.

Exceptional Items Impact

The quarter's results were significantly impacted by exceptional items totaling ₹3,391 crore, affecting the company's bottom line performance.

Restructuring Expenses: The company incurred ₹253 crore in Q3FY26 as part of restructuring initiatives announced in July 2025. For the nine-month period, total restructuring expenses amounted to ₹1,388 crore.

Labour Code Impact: TCS recorded ₹2,128 crore as statutory impact following the Government of India's notification of four Labour Codes on November 21, 2025. This impact consists of gratuity provisions of ₹1,816 crore and long-term compensated absences of ₹312 crore, primarily arising from changes in wage definition.

Legal Provision: The company provided ₹1,010 crore towards a legal claim related to the Computer Sciences Corporation case. This provision was made following the Fifth Circuit's decision on November 21, 2025, affirming liability while vacating the previously granted injunction.

Segment Performance

TCS demonstrated balanced performance across its key business verticals during Q3FY26.

Banking, Financial Services and Insurance remained the largest revenue contributor, generating ₹25,889 crore in Q3FY26. The segment also delivered the highest segment result of ₹6,861 crore.

Strategic Acquisitions

TCS completed the acquisition of ListEngage Midco, LLC and its subsidiary ListEngage, LLC on October 10, 2025, for $69 million (₹610 crore). ListEngage is a leading Salesforce summit partner specializing in Marketing Cloud, CRM, Data Cloud, Agentforce, and AI advisory services.

Additionally, the company signed a definitive agreement to acquire 100% stake in Coastal Cloud Holdings, LLC for $700 million (₹6,294 crore). This acquisition will further strengthen TCS's Salesforce consulting capabilities.

Operational Metrics

The standalone results showed revenue from operations of ₹55,567 crore for Q3FY26, with net profit of ₹10,190 crore. Employee benefit expenses for the quarter stood at ₹27,842 crore on a standalone basis and ₹38,530 crore on a consolidated basis, reflecting the company's continued investment in talent.

TCS continues to maintain its position as a leading global IT services provider, demonstrating resilience in navigating regulatory changes and legal challenges while delivering consistent returns to shareholders through substantial dividend distributions.

Tata Consultancy Services has announced a significant dividend distribution for its shareholders, declaring both regular and special dividends. The IT services giant has approved a regular dividend of ₹11.00 per share along with a special dividend of ₹46.00 per share.

Dividend Distribution Details

The dividend announcement includes two components that will benefit eligible shareholders:

Shareholder Returns

The combined dividend payout of ₹57.00 per share represents a substantial return to shareholders. The regular dividend of ₹11.00 per share reflects the company's consistent dividend policy, while the special dividend of ₹46.00 per share indicates additional value distribution beyond the regular payout structure.

This dividend declaration demonstrates the company's commitment to sharing profits with shareholders through direct cash distributions. Eligible shareholders will receive the total dividend amount of ₹57.00 per share, combining both the regular and special dividend components.

Corporate Action Summary

The dividend announcement encompasses both regular and special components, providing shareholders with enhanced returns. The regular dividend maintains the company's ongoing commitment to consistent shareholder distributions, while the special dividend represents an additional value-sharing initiative.