NewsEarningsTCS Reports Q3FY26 Revenue of ₹67,087 Crore, Declares Combined Dividend of ₹57 Per ShareTCS Reports Q3FY26 Revenue of ₹67,087 Crore, Declares Combined Dividend of ₹57 Per Share
Tata Consultancy Services reported Q3FY26 consolidated revenue of ₹67,087 crore and net profit of ₹10,657 crore, impacted by exceptional items worth ₹3,391 crore including Labour Code changes and legal provisions. The Board declared a combined dividend of ₹57 per share comprising ₹11 interim and ₹46 special dividend. The company completed ListEngage acquisition for $69 million and signed agreement for Coastal Cloud acquisition worth $700 million.
*this image is generated using AI for illustrative purposes only.
Tata Consultancy Services announced its consolidated financial results for the quarter and nine-month period ended December 31, 2025, demonstrating steady revenue growth despite facing significant exceptional charges. The IT services giant reported consolidated revenue from operations of ₹67,087.00 crore for Q3FY26, marking growth from ₹63,973.00 crore in the corresponding quarter of the previous year.
Financial Performance Overview
The company's financial performance for Q3FY26 reflects both operational strength and exceptional challenges:
| Metric | Q3FY26 | Q3FY25 | Change (%) | Nine Months FY26 | Nine Months FY25 |
|---|---|---|---|---|---|
| Revenue from Operations | ₹67,087 cr | ₹63,973 cr | +4.87% | ₹1,96,323 cr | ₹1,90,845 cr |
| Total Income | ₹68,205 cr | ₹65,216 cr | +4.58% | ₹1,99,968 cr | ₹1,93,779 cr |
| Net Profit | ₹10,657 cr | ₹12,380 cr | -13.91% | ₹35,492 cr | ₹36,329 cr |
| Earnings Per Share | ₹29.45 | ₹34.21 | -13.91% | ₹98.09 | ₹100.40 |
For the nine-month period ended December 31, 2025, the company achieved revenue from operations of ₹1,96,323.00 crore compared to ₹1,90,845.00 crore in the corresponding period of the previous year, representing steady growth in its core business operations.
Exceptional Items Impact
The quarter was significantly impacted by exceptional items totaling ₹3,391.00 crore, which affected the company's bottom line:
| Exceptional Item | Amount (₹ crore) | Description |
|---|---|---|
| Restructuring Expenses | ₹253 | Termination benefits for associates |
| Labour Codes Impact | ₹2,128 | Statutory impact of new Labour Codes |
| Legal Claim Provision | ₹1,010 | Provision towards CSC legal case |
The statutory impact of new Labour Codes, notified by the Government of India on November 21, 2025, resulted in an incremental impact of ₹2,128.00 crore, primarily consisting of gratuity of ₹1,816.00 crore and long-term compensated absences of ₹312.00 crore due to changes in wage definition.
Segment Performance
The company's diversified business portfolio showed mixed performance across segments:
| Segment | Q3FY26 Revenue | Q3FY25 Revenue | Nine Months FY26 |
|---|---|---|---|
| BFSI | ₹25,889 cr | ₹23,481 cr | ₹76,342 cr |
| Manufacturing | ₹6,580 cr | ₹6,194 cr | ₹19,612 cr |
| Consumer Business | ₹10,581 cr | ₹10,035 cr | ₹31,087 cr |
| CMT | ₹9,902 cr | ₹11,989 cr | ₹29,140 cr |
| Life Sciences & Healthcare | ₹7,068 cr | ₹6,426 cr | ₹20,374 cr |
| Others | ₹7,067 cr | ₹5,848 cr | ₹19,768 cr |
Banking, Financial Services and Insurance remained the largest segment, contributing ₹25,889.00 crore in Q3FY26, while Communication, Media and Technology segment showed a decline from the previous year.
Dividend Declaration and Strategic Initiatives
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.
| Dividend Type | Amount per Share | Total for Quarter |
|---|---|---|
| Third Interim Dividend | ₹11.00 | ₹11.00 |
| Special Dividend | ₹46.00 | ₹46.00 |
| Total Dividend | ₹57.00 | ₹57.00 |
On the strategic front, the company completed the acquisition of ListEngage Midco, LLC and its subsidiary ListEngage, LLC for $69 million (₹610.00 crore) on October 10, 2025. Additionally, Tata Consultancy Services signed a definitive agreement to acquire 100% stake in Coastal Cloud Holdings, LLC for $700 million (₹6,294.00 crore).
Legal and Operational Updates
The company provided ₹1,010.00 crore towards a legal claim related to the Computer Sciences Corporation case, where the Fifth Circuit affirmed the District Court's rulings on liability on November 21, 2025. The company maintains its position and continues to pursue legal remedies.
During the quarter, several new subsidiaries were incorporated, including HyperVault AI Data Center Limited, TCS North America Corporation, and Tata Consultancy Services BT Private Limited, reflecting the company's continued expansion strategy across different geographies and business verticals.
Historical Stock Returns for Tata Consultancy Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.99% | -0.34% | +0.98% | -4.26% | -19.79% | +1.99% |
15
