Newsletter
TCS just kicked off the IT earnings season with its Q3 results that were largely in line with what the street was expecting.
Here are the key numbers:
Net profit: down 11.7% at ₹10,657 cr vs ₹12,075 crore (QoQ)
₹ Revenue: up 2% at ₹67,087 crore vs ₹65,799 crore (QoQ)
The other headline grabber was AI. TCS said it now has $1.8 billion in annualised AI revenue, and that figure grew 17.3% sequentially in constant currency terms. That is much faster than the company’s overall sequential growth of 1.96%.
TCS pointed to customers continuing to spend on Cloud, Data, Cybersecurity and enterprise transformation projects, essentially laying the groundwork so they can actually use AI at scale.
On the people front, the company’s headcount fell by 11,151 employees during the quarter to 582,163.
Bottomline: the broader IT services sector is expected to see only moderate growth in Q3FY26 Demand hasn’t meaningfully improved. The deal pipeline is steady but not accelerating, and global uncertainty persists, including macro risks like tariff worries and trade-war chatter.
