Buy Tata Consultancy Services for the Target Rs.3,350 by Choice Institutional Equities Tata Consultancy Services (TCS) has delivered a strong quarterly performance, with revenue exceeding expectations and robust deal wins reinforcing its growth trajectory despite a challenging macroeconomic environment. The company reported Q4FY26 revenue of USD 7.6 billion, representing a 1.5% sequential increase compared to the previous quarter, and a 5.4% rise in Indian rupees (INR) terms. For the full fiscal year 2026, revenue stood at USD 30 billion, slightly down 0.5% year-over-year, though it remained 4.6% higher in INR terms compared to the prior year. The company’s earnings before interest and tax (EBIT) margin for the quarter was 25.3%, aligning with the expectations of Choice Institutional Equities (CIE). Excluding one-time charges such as those related to the Labour Code changes, restructuring expenses, and other costs incurred in the previous quarter, the reported profit after tax (PAT) grew by 28.7% sequentially, outperforming CIE’s estimate of 27.7% growth. This resilience in profitability underscores TCS’s ability to maintain margins even amid macroeconomic headwinds. A key highlight of the quarter was the company’s strong total contract value (TCV) performance. TCS recorded a TCV of USD 12 billion for Q4FY26, driven by five major deals and a strategic shift toward vendor consolidation and AI-led transformation. The full-year TCV for FY26 reached USD 40.7 billion, reflecting sustained momentum in deal wins.#tata_consultancy_services #amd #openai #choice_institutional_equities #marks_and_spencer
