Q3 2026 Tata Consultancy Services Ltd Earnings Call Transcript
Key Points
- Tata Consultancy Services Ltd (BOM:532540) reported a revenue of INR 67,087 crores for Q3 FY26, marking a 2% sequential growth in rupee terms and 4.9% year-on-year growth.
- The company achieved a strong Total Contract Value (TCV) of $9.3 billion, including a mega deal in North America.
- AI services revenue reached $1.8 billion annualized, growing at 17.3% quarter-on-quarter in constant currency.
- Operating margin remained stable at 25.2%, reflecting improvements in productivity and favorable currency movements.
- The company continues to invest in strategic growth areas, particularly in AI, with a focus on becoming the world's largest AI-led technology services company.
- The North American and U.K. markets showed softness, attributed primarily to seasonality and furloughs.
- The technology software and services segment experienced a decline due to typical Q3 seasonality and ongoing geopolitical uncertainties.
- Voluntary attrition in IT services increased to 13.5%, up 20 basis points sequentially.
- Legal expenses and marketing initiatives led to a significant increase in SG&A expenses.
- The company faced challenges in the domestic travel, transport, and hospitality markets, which remained subdued.
Ladies and gentlemen, good day, and welcome to the TCS Earnings Conference Call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Ms. Nehal Shah from the Investor Relations team at TCS. Thank you, and over to you.
Thank you, operator. Good evening, and welcome, everyone. Thank you for joining us today to discuss TCS' financial results for the third quarter of fiscal year 2026 that ended on December 31, 2015. This call is the webcast through our website and archived (inaudible) this quarter. The financial statements, quarterly (inaudible) are also available on our website.
Our leadership team is present on this call to discuss our results. We have with us K. Krithivasan, Chief Executive Officer and Managing Director.
Hello, everyone.
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