Tata Consultancy Services Ltd. share price target

Despite higher revenue, reported PAT declined 13.9% YoY to Rs. 10,720cr, primari- ly due to exceptional one-off items totalling Rs. 3,391cr, including restructuring expenses, the impact of new labour code and legal claim provision. TCS reported a TCV of $9.3bn in Q3FY26, of which $4.9bn came from North America. BFSI accounted for $3.8bn and the consumer business group $1.4bn. TCS displayed stable financial results in Q3, marked by healthy client engagement, strong deal momentum and growing leadership in AI-led solutions. Despite a challenging macro environment with geopolitical uncertainty and cautious spending, the company secured large contracts, enhanced its digital and cloud offerings and...

We recommend a BUY rating on the stock.

TCS reported a stable operational performance in Q3FY26, although reported profitability was impacted by exceptional items.

TCS demonstrated operational resilience amid macroeconomic headwinds through disciplined execution and strategic AI positioning. Revenue witnessed a muted 0.8% CC QoQ, reflecting cautious global spending. Topline grew 4.9% YoY, signaling the underlying recovery momentum driven by Consumer, EN&U, and Life Sciences verticals. Operating margin stood at 25.2% (excluding one-offs) backed by 80bps productivity gains which were neutralized by 50bps wage hikes and 50 bps brand partnership investments, indicating management's deliberate prioritization of longterm competitive positioning over near-term profitability expansion. AI revenue surged to USD 1.8bn annualized with 17.3% QoQ growth, backed by rapid -build projects delivering tangible value across industries rather than exploratory initiatives,...

AI traction strengthens medium-term growth visibility: AI remains a key growth driver, with annualized AI revenues reaching US$1.8 bn (~6% of the revenues), up 17.3% QoQ in CC terms (implying US$ 600 mn for Q3), and strong sequential momentum across all NextGen service lines. Client conversations around AI-led productivity, modernization and efficiency continue to strengthen, supported by a growing skilled workforce of 217,000+ AI-trained employees who possess higher-order AI skills (~3x increase YoY). This positions TCS well to benefit from a gradual demand recovery and rising...

Revenue came in a tad short while margin was better than our estimates. AI and India drive growth QoQ

TCS reported revenue of USD7.5b in 3QFY26, rising 0.8% QoQ in CC terms, above our estimate of 0.5%. Growth was led by regional market and others (up 4.6% QoQ CC).

Management expects growth in new age services to offset weakness in legacy/traditional business. Notably, AI expected to be margin accelerator via productivity, higher-value services & delivery efficiency. TCS is pivoting to acquisitions to speed up capability creation, as technology is changing rapidly due to GenAI and Agentic AI innovations. More acquisitive stance to strengthen AI advisory and domain depth (e.g., Coastal Cloud, ListEngage for Salesforce). Post-acquisition, TCS' portfolio now has all major Salesforce capabilities and market coverage....

We recommend a BUY on the stock and value the company at 23x multiple to its FY27E earnings to arrive at a TP of Rs 3,565/share, implying an upside of 11% from the CMP.

We recommend a BUY on the stock with a target price of Rs 3,565/share, implying an upside of ~10% from the CMP.

TCS reported a steady performance in the quarter, backed by broad-based growth, steady deal momentum and sequential margin improvement across verticals. Management guided for stronger FY26 international revenue growth compared with FY25. It expects margins to gradually move towards the 26-28% aspirational band. Strategic initiatives remain centred on scaling AI-led transformation, expanding global delivery hubs, and strengthening cloud modernisation and platform capabilities through acquisitions. The company is also investing in sovereign AI data centres with...

Return dilutive datacenter capex aligned to national goal of data localisation. Key for gaining large India govt projects, in our view

Headcount optimization, stable attrition, and wage normalization supported margins in Q2. Combined with strong deal momentum and AI-led transformation investments, these factors are expected to drive margin resilience and revenue acceleration in H2FY26.

TCS reported a 0.8% QoQ growth and 3.3% YoY decline in constant currency revenue driven by strong momentum across most verticals except Consumer Business and geographies excluding the UK. Operating margin expanded 70bps sequentially to 25.2% (excluding one-time severance), aided by currency tailwinds, utilization gains, and pyramid rebalancing, partially offset by wage hikes and ongoing AI investments. Net margin stood at 19.6%. TCS recorded its highest-ever quarterly TCV of USD 10bn (+16% YoY), with BFSI at USD 3.2bn and Consumer Business at USD 1.8bn. Management reiterated that FY26 international revenue...

Strengthened Salesforce capabilities through ListEngage acquisition: TCS announced acquisition of US-based ListEngage for up to US$ 72.8 million (~640 crore), in order to enhance its Salesforce, Agentic AI, and marketing automation capabilities, along with addition of 100+ specialists. Combined with its expanding AI, cloud, and data modernization portfolio, these investments strengthen TCS's positioning for a gradual growth recovery...

We recommend a BUY rating on the stock.

TCS reported revenue of USD7.5b in 2QFY26, up 0.8% QoQ in CC terms vs. our estimate of 1.0%. Growth was led by the Life Science and Healthcare vertical (up 3.4% QoQ CC).

Tata Consultancy Services (TCS) is a global IT services company with deep industry expertise. They offer a wide range of services, including application development, digital transformation, AI, data and cloud services, engineering, cybersecurity, and products. TCS has been a trusted partner for many global...

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TCS reported a subdued performance in Q1FY26, primarily impacted by the rampdown of the BSNL contract and cautious client spending across key verticals. Despite these headwinds, the company delivered margin resilience, with EBIT improving, driven by deferred wage hikes, lower third-party expenses, and favourable currency movements. A robust deal pipeline driven by demand for cost optimization, vendor consolidation, and AI-led transformation, underscores sustained client interest. We expect the launch of AI-led platforms, deeper domain...