Tata Consultancy Providers (TCS) has reported income of $7.50bn for the quarter ending 31 December 2025 (Q3 FY25), a slight lower from $7.53bn reported in the identical interval final yr.
The Q3 FY25 income displays a 0.6% improve from the earlier quarter and a sequential progress of 0.8% in fixed foreign money.
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Web revenue of the Indian IT agency stood at $1.5bn within the reported quarter, a 3.1% year-over-year improve, with the web margin enhancing by 40 foundation factors to twenty.0%.
AI companies have been a big progress driver, with annualised income hitting $1.8bn, marking a 17.3% improve quarter-over-quarter in fixed foreign money.
The working margin remained steady at 25.2%, and money stream from operations was strong at 130.4% of internet revenue. The entire contract worth for the quarter was reported at $9.3bn.
TCS CEO and managing director Ok Krithivasan stated: “The expansion momentum we witnessed in Q2FY26 continued in Q3FY26. We stay steadfast in our ambition to turn out to be the world’s largest AI-led expertise companies firm, guided by a complete five-pillar technique.
“Our AI companies now generate $1.8bn in annualised income, reflecting the numerous worth we offer to shoppers via focused investments throughout your entire AI stack, from Infrastructure to Intelligence.”
In the course of the quarter, TCS partnered with TPG to reinforce its AI information centre enterprise, HyperVault, aiming to construct AI-ready infrastructure exceeding a gigawatt in capability.
Moreover, TCS signed an settlement to amass Coastal Cloud, a Salesforce Summit accomplice, for $700m, in a transfer to bolster its Salesforce consulting capabilities. This deal was introduced final month.
The corporate has expanded its partnership with Google Cloud by adopting the Gemini Enterprise AI platform, empowering TCS’ workforce to develop superior AI options and enhance operational workflows.
TCS has additionally prolonged its collaboration with ABB to modernise its world internet hosting operations and strengthen its digital infrastructure.
The Indian IT agency stated that it has been chosen by the NHS Provide Chain for software improvement assist and upkeep of its core enterprise techniques over a five-year interval, deploying cloud and AI-enabled options to reinforce operational effectivity.
Additional partnerships embody agreements with Aviva, Canada Life, Cathay, and a number one North American semiconductor firm, specializing in reworking IT operations, enhancing buyer experiences, and driving digital transformation throughout varied sectors.
TCS government director president and chief working officer Aarthi Subramanian stated: “We continued to see AI acceleration this quarter. We helped clients determine precious AI alternatives via Innovation Days and deployed options quicker with Speedy Builds.
“Our clients proceed to spend money on Cloud, Knowledge, Cyber and Enterprise Transformations to construct readiness for AI. We additional strengthened our Salesforce capabilities with Coastal Cloud acquisition, constructing on our funding in ListEngage.”
In sustainability efforts, TCS has partnered with Tata Motors to speed up its environmental initiatives utilizing the Prakriti platform, powered by TCS’s AI-driven Clever City Change.
TCS has additionally introduced the launch of an AI Expertise Zone and Design Studio in London, reinforcing its dedication to the UK economic system. The corporate plans to create 5,000 new jobs within the UK over the following three years as a part of its ongoing funding in employment and expertise improvement.
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