TCS Shares Tumble After Q4 Earnings — What's Ailing The Stock?

Shares of Tata Consultancy Services Ltd. have opened with sharp cuts in trade today, just a day after reporting its fourth quarter earnings for the financial year ending March 2026. The stock is trading at Rs 2,535, which accounts for a fall of more than 2% compared to Monday's closing price.

TCS announced its Q4 results after market on Monday, reporting a 29% sequential rise in its net profit for the fourth quarter of FY26.

The IT giant registered its consolidated bottom-line at Rs 13,720 crore for quarter ended March 31, 2026. In the previous quarter its net profit stood at Rs 10,657 crore. Analysts on Bloomberg had estimated a net profit of Rs 13,581 crore.

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Revenue rose 5.5% to Rs 70,698 crore from Rs 67,087 crore, beating analysts' estimate of Rs 67,087 crore. Earnings before interest and taxes rose 6% to Rs 17,870 crore, up 6% from Rs 16,889 crore in Q3, FY26. Whereas EBIT margin stood at 25.3%, compared to 25.2% in the third quarter.

ALSO READ: 400% Goodwill Surge: TCS Spent Big in FY26 — But Can It Turn Acquisitions Into Alpha?

What's Ailing TCS In Trade?

Although TCS' earnings were largely in line, with the revenue metrics even beating analyst expectations, analysts are cautious about the road ahead, particularly with the company offering a subdued growth outlook.

That is according to several brokerages, who have largely maintained a cautious view on the counter, with the likes of Investec and Jefferies even reducing the target price. 

Jefferies on TCS

• Maintain Underperform; Cut TP to Rs 2275 from Rs 2350
• Subdued growth outlook
• Q4 revenue was in line, though margins missed estimates
• Weak growth in BFSI, flat YoY deal bookings
• AI-led revenue deflation due to higher exposure to application managed services should keep growth in check
• Margins are expected to remain range bound in absence of strong revenue growth
• Expect a subdued 5.5% EPS CAGR over FY26-29

Citi on TCS

• Maintain Sell with TP of Rs 2250
• Q4 EBIT Inline
• Expect low single-digit revenue growth to continue
• TCS Q4/commentary had data points supporting both the bullish and bearish views
• Continue to be cautious given high competitive intensity, continued impact of AI led productivity in existing business and GCC impact
• Relative preference for Infosys & HCL among large caps

Investec on TCS

• Maintain Buy; Cut TP to Rs 3020 from Rs 3700
• An inline quarter on revenue, EBIT margins and earnings
• Deal wins continue to remain robust
• EPS estimates are largely similar
• Cut P/E multiple by 20% as we now assume long term growth rates of 5%
• Believe risk-reward is highly favourable

ALSO READ: TCS Q4 Result Review: Jefferies, Investec Cut Target Price As Analysts Remain Cautious

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