TCS Q3 profit falls 14%, revenue climbs; special dividend announced

Tata Consultancy Services (TCS), India’s biggest IT services company, reported a dip in profitability even as revenues inched up during the third quarter of FY26. For the October–December 2025 period, the company posted a net profit of ₹10,657 crore, marking a 13.9% decline compared to ₹12,380 crore recorded in the same quarter last year. On a sequential basis too, profit was lower than the ₹12,075 crore reported in the previous quarter.

Despite the fall in earnings, TCS’ revenue grew 4.86% year-on-year to ₹67,087 crore, up from ₹63,973 crore logged in Q3 FY25, the company said in its regulatory filing.

Along with the results, the TCS board announced investor rewards in the form of dividends. The company declared a third interim dividend of ₹11 per share and a special dividend of ₹46 per share. The record date has been set for January 17, and payments will be made on February 3.

The total contract value (TCV) for the quarter stood at $9.3 billion, indicating steady deal momentum.

TCS CEO and MD K. Krithivasan said that the business growth seen in the previous quarter continued into Q3. He reiterated that the company is focused on becoming the world’s leading AI-driven technology services firm, driven by its five-pillar strategy. TCS’ AI services currently generate an annualised revenue of $1.8 billion.

Chief Operating Officer Aarthi Subramanian noted that clients are accelerating AI adoption and continue to invest in cloud, data, cybersecurity and digital transformation. She highlighted the recent acquisition of Coastal Cloud as a boost to the company’s Salesforce capabilities.