Tata Consultancy Services (TCS) has reported its consolidated financial results for the quarter ending December 31, 2025. The company's revenue stood at ₹67,087 crore, marking a 2.0% increase quarter-on-quarter (QoQ), with sequential growth at 0.8% in constant currency. Annualized AI services revenue reached $1.8 billion, showing a significant 17.3% QoQ increase in constant currency.

The operating margin remained stable at 25.2% sequentially. Net income grew by 8.5% year-on-year to ₹13,438 crore, with a net margin of 20.0%, up 40 basis points QoQ. Cash flow from operations was robust at 130.4% of net income.

The Total Contract Value (TCV) for Q3 was US$9.3 billion. TCS announced a dividend of ₹57 per share, including a special dividend of ₹46, with a record date of January 17, 2026, and a payment date of February 3, 2026.

K Krithivasan, CEO and MD, highlighted the continued growth momentum and TCS' ambition to be the world's largest AI-led technology services company, supported by a five-pillar strategy. Aarthi Subramanian, Executive Director, President and COO, emphasized the acceleration in AI adoption and strategic acquisitions like Coastal Cloud. Samir Seksaria, CFO, noted the sustained margin performance and strong cash conversion, underscoring disciplined execution and financial resilience.

Key strategic initiatives during the quarter included a partnership with TPG to support TCS’ AI data center business, HyperVault, and the acquisition of Coastal Cloud, a Salesforce partner. TCS also expanded its partnership with Google Cloud, adopting the Gemini Enterprise platform to build advanced agentic AI solutions. Several multi-year deals were signed across various industries, including agreements with ABB, National Health Service (NHS) Supply Chain, Aviva, Canada Life, Cathay, and a North American semiconductor company. The company also extended its partnerships with Morrisons and a leading global petrochemicals company, and entered a new agreement with a leading US grocery retailer for IT operations transformation.

TCS also announced the launch of an AI Experience Zone and Design Studio in London, committing to creating 5,000 new jobs in the UK over the next three years. As of December 31, 2025, TCS had applied for 9,428 patents and been granted 5,262 patents.