Tata Consultancy Services (TCS) reported strong business momentum in Q3 FY26, driven by its AI-first strategy and sustained focus on innovation across cloud, enterprise solutions, and industry transformation. During the quarter, the company strengthened its capabilities through a strategic partnership with TPG to scale HyperVault, its AI-ready data center infrastructure, and completed the acquisition of Coastal Cloud, enhancing its Salesforce consulting with AI-enabled multi-cloud expertise. TCS further expanded collaboration with Google Cloud by adopting the Gemini Enterprise agentic AI platform, enabling faster and more efficient human+AI workflows, and secured a multi-year, multi-million-dollar engagement with a global hyperscaler to deliver next-generation AI solutions at scale. Reinforcing its commitment to innovation and talent development, TCS launched an AI Experience Zone and Design Studio in the UK, with plans to create 5,000 new jobs over the next three years, underscoring its ambition to lead the global AI-led technology services landscape.

Key Client Wins and Industry Impact
In Q3 FY26, TCS strengthened and expanded its client relationships across multiple industries. The company will modernize ABB’s global hosting operations with AI-powered modular infrastructure and support NHS Supply Chain in IT and cloud modernization. Insurance leaders Aviva and Canada Life have partnered with TCS to enhance core services, while Tata Motors will digitize ESG data through the AI-driven Prakriti platform. Retail and logistics clients, including Morrisons and leading North American grocery chains, leveraged TCS’s AI-first IT transformation to optimize operations and improve customer experiences. Additionally, TCS established AI-ready delivery hubs with a European luxury watchmaker and expanded digital operations with a North American semiconductor company, demonstrating the company’s ability to deliver large-scale, industry-specific AI solutions. These strategic initiatives highlight TCS’s growing influence as a trusted partner in driving innovation, operational efficiency, and digital transformation globally.

Major Client Wins and Industry Impact in Q3 FY26
The quarter saw TCS deepen and expand key client relationships worldwide. TCS will modernize ABB’s global hosting operations with modular AI‑powered infrastructure and support the NHS Supply Chain with cloud and AI‑enabled IT modernization. In insurance, partnerships with Aviva and Canada Life will modernize core services and data platforms. TCS also entered a multi‑year agreement with Tata Motors to digitize ESG data via the AI‑driven Prakriti platform. In retail and logistics, Morrisons and leading North American grocery clients tapped TCS for AI‑first IT transformation and customer experience enhancements. Additionally, TCS established new AI‑ready delivery hubs with a European luxury watchmaker and secured expanded digital roles with a North American semiconductor firm. CEO K Krithivasan highlighted these Q3 business developments as evidence of strong AI adoption, strategic execution, and TCS’s ambition to become the world’s largest AI‑led technology services company.

Recent Financial Trends Show Operating Stability

Q3 FY26 delivered steady operational performance, with revenue rising sequentially to ₹67,087 crore and EBITDA increasing to ₹18,269 crore. EBITDA margins stayed stable at 26–27%, reflecting disciplined cost control despite wage and operating pressures. However, net profit fell to ₹10,720 crore, continuing a decline seen since Q1 FY26, and EPS dropped to ₹29.45. While core operations remained resilient, pressures below the operating line and higher costs weighed on profitability, prompting analysts to maintain a cautious outlook despite stable topline growth.

Technical Summary

Tata Consultancy Services (NSE: TCS) is trading at ₹3,214.40. The stock shows a support level near ₹3,116, with another support around ₹3,000 that has earlier acted as a base. On the upside, resistance is observed near ₹3,358, where price movement has slowed previously. A higher resistance level is seen around ₹3,500, which has limited price movement in past trading sessions.

Conclusion
Tata Consultancy Services (TCS) is expanding its AI and digital capabilities through strategic partnerships, acquisitions, and collaborations. The company is working with major clients across industries, including manufacturing, healthcare, insurance, and retail, to implement AI-driven and cloud-based solutions. TCS is also establishing new delivery hubs and planning to create 5,000 jobs in the UK over the next three years. These initiatives show the company’s ongoing efforts to strengthen its technology services, enhance operational efficiency for clients, and grow its presence in global digital and AI-led solutions.

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