TCS Q3FY26 Earnings Results Out: Net Profit Falls Despite Revenue Growth

As per TCS Q2 FY26 earnings results, the company entered Q3 with stable revenue momentum but faced pressure from exceptional costs, which reflected in its Q3 FY26 numbers.

Highlights of TCS Q3FY26 Earnings Results 

While revenue continued to grow, profitability was impacted during the quarter due to exceptional costs. TCS made provisions related to the implementation of new labour codes, which affected employee-related expenses. The company also provided for legal claims and restructuring costs, which weighed on net profit. 

Here is the full breakdown: 

Margins and Order Book Update

Despite these setbacks, TCS reported net income of ₹13,438 crore, representing an 8.5% year-on-year increase. Net margins improved to 20%, rising by 60 basis points compared with last year and 40 basis points sequentially, indicating continued focus on cost efficiency.

The total contract value (TCV) for the quarter stood at $9.3 billion. While this reflected steady deal activity, it was below market expectations of $10–11 billion, suggesting some moderation in large deal closures during the period.

Dividend Announcement

Alongside its results, TCS announced a total dividend of ₹57 per share. This included a third interim dividend of ₹11 per share and a special dividend of ₹46 per share. The payout is scheduled for February 3, 2026, for shareholders on record as of January 17, 2026.

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Conclusion

TCS delivered steady revenue growth and margin improvement in Q3FY26, but exceptional charges led to a decline in net profit. While near-term pressures remain, stable demand, healthy margins, and a strong dividend payout continue to support the company’s long-term outlook.

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