Tata Consultancy Services delivered strong financial performance in Q3FY26, demonstrating continued growth momentum across key business segments. The company reported revenue of ₹67,087 crores for the quarter ended December 31, 2025, reflecting sustained demand for its technology services and AI-driven solutions.

Financial Performance Overview

The company's financial metrics for Q3FY26 showcased robust performance across multiple parameters:

International services revenues grew 0.4% sequentially in constant currency, with growth led by Consumer Business Group, Energy Resources & Utilities, Life Sciences & Healthcare, and Communications Media & Information verticals. The BFSI and Technology Software and Services segments performed well when adjusted for seasonality.

AI Services Drive Growth Momentum

TCS's artificial intelligence services emerged as a significant growth driver, achieving remarkable momentum during the quarter. The company's AI services now generate $1.8 billion in annualized revenue, representing 17.3% quarter-on-quarter growth in constant currency. This performance underscores the company's successful transformation into an AI-led technology services provider.

The rate of production deployments for AI projects in 2025 showed marked improvement over the prior year, with Q3FY26 performance further reinforcing this positive trend. TCS delivered over three times more rapid builds for customers this quarter compared to previous periods, demonstrating accelerated innovation-to-build cycles.

Strong Deal Wins and Client Expansion

TCS secured significant contract wins during Q3FY26, achieving total contract value (TCV) of $9.3 billion across various markets and industries:

On a last twelve months (LTM) basis, TCS gained 2 additional clients generating more than $100 million in revenue, 8 clients exceeding $20 million, and 23 clients bringing in over $1 million each.

Operational Excellence and Margin Stability

Despite various operational challenges, TCS maintained stable operating margins at 25.2% during Q3FY26. The company achieved 80 basis points benefit from improvements in productivity, pyramid optimization, and other operational efficiencies. Favorable currency movements contributed an additional 20 basis points, while full quarter impact of wage increases had a negative impact of 50 basis points.

The company's cash flow performance remained strong with net cash from operations at $1.6 billion, representing 130.4% of net income. Free cash flows reached $1.4 billion, while invested funds stood at $7.1 billion at period end.

Strategic AI Ecosystem Investments

TCS continued expanding its AI ecosystem presence through strategic partnerships and acquisitions. The company announced a $1 billion equity partnership with TPG, a leading global alternative asset management firm, to support growth of GW-scale AI data center infrastructure build-out.

Additionally, TCS announced the acquisition of Coastal Cloud in the U.S. to strengthen Salesforce and AI consulting services. Combined with ListEngage, TCS now ranks among the top 5 global Salesforce consultants, gaining over 500 experts and 3,400 certifications while boosting CRM capabilities.

Workforce and Talent Development

At the end of Q3FY26, TCS's global headcount stood at 582,163 associates from 149 nationalities, with 35.1% women representation. The company completed 51.2 million learning hours year-to-date and acquired 3.8 million competencies. Notably, TCS now has 217,000+ employees with higher-order AI skills, representing a 3x increase over the previous year.

Tata Consultancy Services witnessed a significant block trade on the National Stock Exchange (NSE), with approximately 100,360 shares transacted at ₹3,205.90 per share. The large-scale transaction represents a total deal value of ₹32.17 crores.

Block Trade Details

The block trade executed on NSE demonstrates substantial investor interest in the IT services major. The transaction details are summarized below:

Market Significance

Block trades typically involve large institutional investors, mutual funds, or high-net-worth individuals looking to execute substantial transactions without impacting the stock's market price significantly. Such trades are conducted outside the regular trading mechanism to ensure minimal market disruption.

The execution price of ₹3,205.90 per share reflects the prevailing market conditions at the time of the transaction. Block trades of this magnitude often indicate strategic portfolio adjustments by institutional investors or significant stake changes in the company.

Transaction Impact

This block trade represents a meaningful transaction in Tata Consultancy Services shares, highlighting continued investor interest in the company's stock. The deal size of ₹32.17 crores underscores the substantial nature of the transaction and suggests significant capital movement in the IT services sector.