TCS Q3FY26 Earnings Indicate Company Received US$1.8 Billion in AI Revenue

Tata Consultancy Services (TCS) reported its Q3 FY26 results, highlighting the growing importance of AI in its business. The company generated US$1.8 billion in AI services revenue, up 17% from the previous quarter, showing that AI is moving from pilot projects to large-scale solutions used across multiple clients.

AI Services Fueling Growth

The AI segment now forms a significant part of TCS’ business, contributing not just to revenue, but also to new contract wins and strategic partnerships. This growth reflects increasing demand for AI solutions in enterprise operations, cloud transformation, and digital services. AI is helping TCS deliver smarter solutions faster, strengthening its position as a leading technology services company.

Segment-Wise Breakdown of TCS Q3FY26 Earnings Results

Note: This table indicates major business segments of TCS that contributed to its revenue, and is not an exhuastive list. 

Regional Performance

From a regional perspective, North America remained the largest market, contributing 48.5% of revenue. Latin America, Continental Europe, Asia Pacific, India, and MEA posted sequential growth ranging from 1% to 8%, while the UK saw a slight contraction. Overall, growth was balanced across most markets.

Key Partnerships and Business Expansion

• TCS partnered with TPG to build large AI data centres, called HyperVault, to support enterprise AI solutions.
• The company acquired Coastal Cloud to strengthen its Salesforce and AI consulting capabilities.
• TCS adopted Google Cloud’s Gemini Enterprise platform to develop advanced AI solutions that help clients work smarter.
• The company is helping NHS Supply Chain modernise its IT systems using AI and cloud solutions, improving overall efficiency.

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Conclusion

TCS’ Q3 FY26 results demonstrate AI’s growing role as a key revenue driver, generating US$1.8 billion and driving new deals. While overall revenue growth was modest, AI services, steady margins, and strategic partnerships position the company for long-term growth in the AI-driven technology services market.

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