Tata Consultancy Services Ltd. share price target

Weak start for FY26 likely. Salary hike postponed due to uncertainty in the demand environment

TCS reported revenue of USD7.5b in 4QFY25, down 1.0% QoQ in USD terms vs. our estimated decline of 0.8%. FY25 revenue stood at USD30.2b, up 4.2% YoY in CC.

TCS’s Q4FY25 revenue (-1.1%) came below our estimates. Revenue grew to INR 644,790 Mn (+0.8% QoQ /+5.3% YoY), driven by strong performance across the Asia Pacific, India and MEA region, which was partly offset by weakness in North America.

TCS Q4FY25 reported revneue stood at $7,465 million, down 1% q-o-q/up 1.4% y-o-y, missing our estimate of $7,501 million. Revenue growth in constant currency (CC) terms stood at 2.5% y-o-y. Revenue in rupee terms stood at Rs. 64,479 crore, up 0.8% q-o-q/5.3% y-o-y.

TCS’s Q3FY25 revenue and profits came in line with our estimates. Revenue grew to INR 639,730 Mn (+5.6% YoY/-0.4% QoQ), driven by strong performance in the Latin America, UK, and India region partially offset by weakness in North America region.

3QFY25 broadly in line. International growth weaker than expected. 4Q TCV must be a bumper one for FY25 to match FY24

Reported revenue growth stood at $7,539 million, down 1.7% q-o-q/up 3.5% y-o-y missing our estimates of $7,591 million. Revenue growth in constant currency (CC) terms stood at 4.5% y-o-y. Revenue in rupee terms stood at Rs. 63,973 crore, down 0.4% q-o-q/up 5.6% y-o-y. Seasonality and softness in discretionary demand led to the decline in revenues

TCS reported revenue of USD7.5b in 3QFY25, down 1.7% QoQ in USD terms vs. our estimated decline of 0.3%. Growth was driven by India (up 8.2% QoQ/66.3% YoY) and MEA (up 7.7% QoQ), while North America was down 1.5% QoQ.

Tata Consultancy Services Limited (TCS) recorded revenue of Rs. 64,259 Crore, a growth of 7.6% YoY. The company recorded constant currency revenue growth of 5.5% in Q2 FY25.

TCS’s operating performance missed expectations in Q2. Revenue grew 2.2% QoQ (1.1% CC) to USD7.67bn, in line with expectation.

TCS's Q2FY25 revenue aligned with our estimates, but earnings fell short of expectations. Revenue grew to INR 642,590 Mn (+7.7% YoY/+2.6%QoQ), driven by strong performance in the India, Asia-Pacific, and Europe regions.