TCS and HCLTech Q3 Earnings Highlight AI Impact on Revenue Growth
Tata Consultancy Services (TCS) reported a 0.8% quarter-on-quarter revenue increase in Q3 FY26, with operating margins steady at 25.2%, while HCLTech saw a 4.2% revenue growth driven by AI-related spending and significant deal wins. TCS's AI revenue reached an annualized rate of USD 1.8 billion, and HCLTech raised its FY26 growth guidance to 4.75-5.25%. Despite these positive developments, analysts expressed concerns over narrow revenue growth and potential macroeconomic risks impacting demand recovery.
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Tata Consultancy Services (TCS) reported a 0.8% quarter-on-quarter revenue increase in Q3 FY26, maintaining operating margins at 25.2%. HCLTech achieved a 4.2% revenue growth, driven by AI-linked spending and deal wins totaling USD 3 billion.
Analysts noted selective redeployment of enterprise technology budgets towards AI infrastructure. TCS's AI revenue reached an annualized rate of USD 1.8 billion, while HCLTech raised its FY26 revenue growth guidance to 4.75-5.25%. Despite overall positive trends, several brokerages cautioned about narrow revenue growth and macroeconomic risks affecting demand recovery.
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