Should you buy TCS after Q3 results? Brokerages explain

TCS share price: Shares of Tata Consultancy Services (TCS) will be in focus on Tuesday after the company reported its December quarter results and announced a dividend.

On Monday, TCS shares closed at Rs 3,243 on the NSE, up 1.10 per cent. The stock opened at Rs 3,203 and touched an intraday high of Rs 3,252 and a low of Rs 3,174.30. The company’s market capitalisation stood at about Rs 11.71 lakh crore. The stock’s 52-week high is Rs 4,322.95, while the 52-week low is Rs 2,866.60.

Q3 performance

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India’s largest IT services company beat revenue growth estimates in the October–December quarter of FY26, supported by early signs of recovery in BFSI, steady demand from North America, and traction in AI-led projects.

TCS reported a 13.9 per cent year-on-year decline in net profit at Rs 10,657 crore for Q3FY26, compared with Rs 12,380 crore a year ago. On a sequential basis, profit fell 11.7 per cent.

The company said earnings were impacted by restructuring costs, one-time charges linked to changes in labour codes, and a provision of Rs 1,010 crore for a legal claim.

Revenue rose 4.9 per cent year-on-year to Rs 67,087 crore in the December quarter. On a quarter-on-quarter basis, revenue increased 2 per cent.

TCS reported exceptional expenses of Rs 3,391 crore in Q3FY26. This compares with Rs 1,135 crore in the September 2025 quarter and nil in the year-ago period.

Deal wins

The total contract value of deals signed during the quarter stood at $9.3 billion. This was lower than $10 billion in Q2FY26 and slightly below $9.4 billion reported in Q1FY26.

TCS share price target 2026

Brokerages remained largely constructive on the stock, despite near-term margin pressure.

JP Morgan maintained an overweight rating and raised its target price to Rs 4,200 from Rs 4,100.

UBS retained a neutral rating and marginally increased its target to Rs 3,550 from Rs 3,540.

CLSA maintained an accumulate rating but cut its target price to Rs 3,593 from Rs 3,601.

Morgan Stanley kept an overweight rating and raised its target to Rs 3,540 from Rs 3,430. The brokerage said developed markets were slightly weaker than expected in Q3 but added that

management commentary suggests momentum is holding up and FY27 expectations largely remain intact.

Anil Singhi on TCS share

Commenting on the stock, Anil Singhvi, Managing Editor, Zee Business, recommended buying TCS futures with a stop-loss at Rs 3,190 and targets of Rs 3,265–3,290. He said, “The results were largely in line with expectations. There is no disappointment as estimates were modest. Margins remain stable while outlook and guidance are strong.”

Dividend announcement

TCS also announced a dividend of Rs 57 per share, which includes a special dividend of Rs 46 per share. The company said the payout reflects strong cash generation, even as global tech spending remains cautious.

The record date for the dividend has been fixed as January 17, while the dividend will be paid on February 3.