TCS Q3 Results: Net Profit Misses Estimates, Revenue Up 2%; Bumper Dividend Declared

Tata Consultancy Services Ltd. posted a net profit of Rs 10,657 crore in the quarter ended December 2025, which marked a slump of 11.7% as against Rs 12,075 crore in the preceding quarter.

The bottom-line has fallen short of the estimate of Rs 12,868 crore, as projected by the analysts tracked by Bloomberg.

The IT major's revenue, however, edged 2% higher sequentially to Rs 67,087 crore, which was in line with the estimate of Rs 66,893 crore.

The earnings before interest and taxes also rose 2% to Rs 16,889 crore, as compared to Rs 16,565 crore in the preceding quarter. This was also in line with the estimates.

The EBIT margin stayed flat sequentially at 25.2%, marginally higher as against the estimate of 24.9%.

The company declared a bumper dividend of Rs 57, which comprises a third interim dividend of Rs 11 per share and a special dividend of Rs 46 apiece.

TCS Q3 Results (Consolidated, QoQ)

• Net profit down 11.7% at Rs 10,720 crore versus Rs 12,131 crore (Estimate of Rs 13,006 crore).

• Revenue up 2% at Rs 67,087 crore versus Rs 65,799 crore (Estimate of Rs 66,849 crore).

• EBIT margin flat at 25.2% (Estimate: 24.9%)

• EBIT up 2% at Rs 16,889 crore versus Rs 16,565 crore (Estimate of Rs 16,732 crore)

Dividend Tops Estimates

India's largest IT exporter announced a cumulative dividend of Rs 57 per share, which is higher than the consensus estimate of Rs 34.19 projected by the analysts tracked by Bloomberg.

The company has fixed Jan. 17 as the record to determine the shareholders eligible for the dividend payment. The amount will be paid on Feb. 3, according to the regulatory filing.

So far in the current financial year, the company has paid dividends totalling Rs 22 per share. For the full year, analysts tracked by Bloomberg expect a payout of Rs 115.72 per share.

Employee Count Dips

TCS lost a total of 11,151 employees in the third quarter, with its attrition rate rising to 13.5% from 13.3% in the July-September period.

The overhaul headcount reduced to 582,163 in Q3 from 593,314 in Q2. Since the company's restructuring announcement in the June quarter, the employee count has slipped by 30,906.

AI Stays In Focus

Artificial intelligence remains a key area of focus for TCS, the management underlined. The IT sector behemoth logged an annualised AI services revenue at $1.8 billion, up 17.3% sequentially in constant currency terms.

“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. Our AI services now generate $1.8 billion in annualized revenue, reflecting the significant value we provide to clients through targeted investments across the entire AI stack, from infrastructure to intelligence," said K Krithivasan, chief executive officer and managing director.

Before the quarterly results were declared, shares of TCS closed 1.1% higher at Rs 3,243 apiece on the NSE, compared to 0.42% rise in the benchmark Nifty 50.