Tata Consultancy Services (TCS) has released its financial results for the quarter ended December 31, 2025, showing a resilient performance in revenue despite significant one-time impacts on its bottom line. The Board of Directors also rewarded shareholders with a substantial payout, declaring a third interim dividend and a special dividend.
Revenue Performance: Robust Growth in Core Segments
TCS reported a consolidated revenue from operations of 67,087 crore for Q3 FY2026. On a year-over-year (YoY) basis, this represents a growth of 4.87% compared to the 63,973 crore reported in the same quarter last year.
Growth was driven across several key industry verticals:
Banking, Financial Services and Insurance (BFSI): The largest segment saw revenue rise to 25,889 crore, up 10.25% YoY from 23,481 crore.
Consumer Business: This vertical grew to 10,581 crore, a 5.44% increase from 10,035 crore in Q3 FY2025.
Manufacturing: Revenue increased to 6,580 crore, up 6.23% from 6,194 crore YoY.
However, the Communication, Media and Technology segment faced headwinds, with revenue declining 17.41% YoY to 9,902 crore from 11,989 crore.
Profitability and Exceptional Items
The consolidated profit for the period stood at 10,720 crore, which is a 13.85% decrease compared to the 12,444 crore recorded in the same period last year. This decline is primarily attributed to several large-scale exceptional items totaling 3,391 crore for the quarter.
The three major exceptional charges were:
Statutory impact of new Labour Codes: A one-time charge of 2,128 crore related to the notification of four new Labour Codes in India, primarily due to changes in wage definitions affecting gratuity and compensated absences.
Provision towards legal claim: A charge of 1,010 crore (US $112 million) related to an ongoing legal dispute with Computer Sciences Corporation (CSC) regarding trade secrets.
Re-structuring expenses: 253 crore was allocated for initiatives to release associates whose deployment is no longer feasible.
Shareholder Rewards: Dividends Declared
Despite the pressure on net profit from one-off items, TCS remains committed to returning value to its shareholders. The Board declared a total payout of 57 per share:
Third Interim Dividend: 11 per equity share.
Special Dividend: 46 per equity share.
The record date for both dividends is fixed for January 17, 2026, with payments scheduled for February 3, 2026.
Strategic Acquisitions and Outlook
TCS continues to strengthen its capabilities in high-growth areas. During the quarter, the company acquired ListEngage, a leading Salesforce partner, for US $69 million ( 610 crore). Furthermore, TCS has signed a definitive agreement to acquire Coastal Cloud, another Salesforce Summit partner, for US $700 million ( 6,294 crore).
These moves highlight the company's focus on expanding its Salesforce consulting and AI advisory services globally.
