TCS brokerages—Should you buy, sell or hold TCS shares? How analysts view q2 results

TCS Share Price Target: Tata Consultancy Services (TCS), India’s largest IT services company, reported a net profit of Rs 12,075 crore for the July–September quarter (Q2 FY26), down 5.4% sequentially, missing Street estimates of around Rs 12,744 crore. On a yearly basis, profit rose 1.4%. Revenue stood at Rs 65,799 crore, up 2.4% year-on-year and 3.7% quarter-on-quarter.

Brokerages issued mixed opinions after the q2 results of TCS. Some of them highlighting margin strength and AI-led initiatives, while others flagged weak growth and rising capital intensity

UBS on TCS: Neutral, target raised to Rs 3,435

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UBS maintained a neutral stance and raised its target price to Rs 3,435 from Rs 3,400. The brokerage said TCS delivered a margin beat in Q2, supported by ongoing AI investments. However, it noted that client caution continues, leading to tight discretionary spending and project delays, though deferrals are lower compared to the previous quarter.

Jefferies on TCS: Hold, target cut to Rs 3,100

Jefferies maintained a hold rating but trimmed its target price to Rs 3,100 from Rs 3,230, citing weak growth momentum. It said company’s data center expansion may add limited upside. Brokerage noted that growth in key markets is yet to recover and 3% QoQ decline in headcount does not bode well.

While TCS’ intent to invest for growth is promising, its data center foray has limited synergies, Jefferies added.

Citi on TCS: Sell, target raised to Rs 2,800

Citi maintained a sell rating but slightly raised its target to Rs 2,800 from Rs 2,790. It termed Q2 as “in line” but said the company’s asset intensity will rise in the medium term. Citi flagged the 3% headcount decline as a concern and warned of increasing competition and risks to AI-led productivity in existing businesses.

Goldman Sachs on TCS: Buy, target Rs 3,300

Goldman Sachs maintained a buy rating with a target of Rs 3,300, citing in-line revenue growth and a marginal EBIT improvement. It said TCS’s 1 GW data center capacity plan over 5–7 years could account for up to 20% of India’s total capacity. The brokerage also noted TCS’s increasing appetite for acquisitions, marking a strategic shift for the company.

CLSA on TCS: Outperform, target Rs 3,559

CLSA retained an outperform rating with a target of Rs 3,559, calling Q2 a “beat on all fronts” including revenue, margins, and order bookings. It said TCS expects demand in the second half of FY26 to improve versus the first half. The brokerage also appreciated TCS’s proactive restructuring moves to make its workforce AI-ready.

HSBC on TCS: Hold, target Rs 3,260

HSBC maintained a hold call with a target of Rs 3,260, saying Q2 was strong on both growth and margins, while deal wins were steady. It termed TCS’s AI capacity expansion a positive move that strengthens partnerships with hyperscalers.

Nomura on TCS: Neutral, target Rs 3,300

Nomura kept a neutral stance with a target of Rs 3,300. It said Q2 revenue beat expectations, though PAT was impacted by restructuring costs. The brokerage highlighted TCS’s USD 6–6.5 billion capex plan for its data center business over six years. It added that management expects FY26 to be better than FY25, but a major margin jump appears unlikely.