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TCS Q3 Results: Net Profit Falls 14% YoY To Rs 10,657 Crore, Revenue Up 5%, Dividend Declared

TCS Q3 Results: Net Profit Falls 14% YoY To Rs 10,657 Crore, Revenue Up 5%, Dividend Declared
On a quarter-on-quarter basis, TCS' profit after tax was lower by 11.7% from Rs 12,075 crore posted in the preceding September quarter of FY26.
TCS Q3 Results: Tata Consultancy Services (TCS), India's largest IT services company, on Monday reported a 13.9 per cent fall year-on-year (YoY) in its net profit to Rs 10,657 crore for the third quarter ended December 2025 (Q3 FY26). However, its revenue during October-December 2025 increased 4.86 per cent to Rs 67,087 crore, compared with Rs 63,973 crore in the year-ago period.
The fall in the net profit comes due to large exceptional charges linked to restructuring, labour law changes, and a long-running US legal dispute. Excluding exceptional items, TCS reported net profit of Rs 13,438 crore, up 8.5 percent year-on-year, which showed that the headline profit decline was driven largely by one-off costs rather than operating weakness.
Its consolidated net profit had stood at Rs 12,380 crore in the corresponding period last year (Q3 FY25), according to a regulatory filing.
On a quarter-on-quarter basis, TCS' profit after tax was lower by 11.7% from Rs 12,075 crore posted in the preceding September quarter of FY26.
TCS Q3FY26 Interim Dividend, Special Dividend
The company has also declared a third interim dividend of Rs 11 per share and a special dividend of Rs 46 per share. The record date for the dividend is January 17 and the payment date is February 3, according to a regulatory filing by TCS.
“We would like to inform you that at the Board Meeting held today, the Directors have declared a third interim dividend of Rs 11 and a special dividend of Rs 46 per Equity Share of Re 1 each of the Company,” TCS stated.
Its total contract value (TCV) stood at $9.3 billion during Q3 FY26.
K Krithivasan, chief executive officer and managing director, said, “The growth momentum we witnessed in Q2FY26 continued in Q3FY26. We remain steadfast in our ambition to become the world's largest AI-led technology services company, guided by a comprehensive five-pillar strategy.”
The company's AI services now generate $1.8 billion in annualised revenue, reflecting the significant value we provide to clients through targeted investments across the entire AI stack, from Infrastructure to Intelligence, he added.
Aarthi Subramanian, executive director – president and chief operating officer, said, “We continued to see AI acceleration this quarter. We helped customers identify valuable AI opportunities through Innovation Days and deployed solutions faster with Rapid Builds. Our customers continue to invest in Cloud, Data, Cyber and Enterprise Transformations to build readiness for AI. We further strengthened our Salesforce capabilities with Coastal Cloud acquisition, building on our investment in ListEngage.”
Samir Seksaria, Chief Financial Officer, said, “Our sustained margin performance and strong cash conversion this quarter, reflects our disciplined execution and financial resilience. Backed by a robust balance sheet, we continue to invest confidently in strategic growth areas. Executing our five-pillar AI strategy at speed and scale is central to our transformation into an AI-first enterprise, and delivering long-term value for our stakeholders.”
Sudeep Kunnumal, Chief HR Officer, said “Our associates are at the heart of our transformation into an AIfirst enterprise. As of this quarter, there are over 217,000 associates with advanced AI skills, directly powering client success at scale. We doubled our intake of fresh graduates with higher order skills, rapidly expanding our next-generation talent pool. The passion and commitment our associates show in mastering next-gen capabilities gives us the confidence to innovate responsibly and deliver sustainable value as AI reshapes the services landscape.”
In the previous quarter of Q2 FY25, TCS had reported a 1.4% rise in its net profit to Rs 12,075 crore. Its revenue increased 0.8% to Rs 65,799 crore.
Source: News18
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