India's largest IT services company, Tata Consultancy Services , is set to report its financial results for the quarter ended December 2025 (Q3FY26) today, January 12. The street expects a steady yet muted performance from the IT giant.

Street Expectations for Q3FY26

Brokerages are projecting modest growth for TCS in the third quarter, with revenue and profit estimates showing single-digit growth rates.

These projections indicate that analysts expect TCS to maintain its growth trajectory, albeit at a measured pace reflecting the current market conditions in the IT services sector.

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Previous Quarter Performance

TCS's Q2FY26 results provide context for the upcoming announcement, showing the company's recent financial trajectory.

The previous quarter's performance fell short of street expectations, with net profit coming in below the anticipated ₹12,573.00 crore, which adds significance to today's results announcement.

Recent Stock Performance

TCS shares have experienced mixed performance across different time horizons, reflecting broader market sentiment and sector-specific challenges.

The stock's performance shows short-term weakness with recent declines, while maintaining modest gains over the three-month period. However, the significant year-over-year decline of 20.53% indicates the stock has underperformed the broader market, making today's results crucial for investor sentiment and future price direction.

Tata Consultancy Services shares are in the spotlight ahead of the December-quarter earnings announcement, with analysts closely monitoring margin trends and the BSNL ramp-up progress. Bloomberg estimates indicate that while headline growth appears positive, underlying constant-currency performance continues to face pressure from the ongoing BSNL ramp-down impact.

The December quarter traditionally represents a seasonally weak period due to fewer billing days. However, analysts note that delays and deferrals have shown improvement compared to earlier periods, with expectations of better execution in select verticals.

Bloomberg Q3 Estimates

Bloomberg's consolidated quarter-on-quarter projections for TCS present the following outlook:

Brokerage Expectations

Investec

Investec projects 0.8% quarter-on-quarter growth in constant currency and 0.5% growth in US dollar terms. The brokerage expects delays and deferrals to ease with a potential turnaround emerging in the communications, media and entertainment vertical. EBIT margins are anticipated to face impact from the two-month wage hike for junior employees, while severance costs are likely to be treated as one-off items below the EBIT line.

Jefferies

Jefferies forecasts 0.5% quarter-on-quarter constant-currency revenue growth, driven by international markets with no contribution expected from the BSNL deal. The brokerage expects margins to rise by 50 basis points, supported by headcount reduction and rupee depreciation, though partially offset by wage hikes and furloughs. Deal wins are projected in the ₹7-9 billion range, with an exceptional severance-related item of ₹800 crore anticipated.

UBS and Nuvama

UBS expects growth to remain impacted by the BSNL ramp-down, with margins seen declining slightly due to furloughs, partly offset by rupee depreciation. Nuvama projects 0.5% quarter-on-quarter constant-currency growth and 0.2% growth in US dollar terms, driven by developed markets. However, Nuvama anticipates margin decline of about 60 basis points due to the two-month wage hike impact.

Key Focus Areas

Analysts will be monitoring several critical aspects during the earnings announcement:

• BFSI demand trends and North America/Europe market performance
• Calendar-year 2026 budget discussions and planning
• Restructuring impact on margin profiles
• BSNL phase-two ramp-up timeline and execution
• H-1B visa fee implications
• Artificial intelligence adoption progress
• US macro outlook and employee restructuring updates

The quarter's performance will be particularly significant as it may indicate whether the company can navigate through current headwinds while positioning for stronger growth in subsequent quarters, especially if the BSNL ramp-up materializes and earlier deal closures translate into revenue recognition.