Synopsis:
TCS declared an interim dividend of ₹11, reported limited YoY growth in Q1FY26, and saw a 2.7% drop in share price following the results. With trimmed target prices, analysts maintained their “Neutral” stance.
A large cap IT stock is in focus today after declaring financial results for Q1FY26 on Thursday and declaring interim dividend. Check the below article to know about their performance and future target given by the analyst.
With a market capitalization of Rs. 11,95,778 crores, the shares of Tata Consultancy Services were trading at Rs. 3290, down by 2.7 percent from its previous closing price of Rs. 3382.
Q1FY26 Results
Tata Consultancy Services (TCS) reported Rs. 63,437 crores in revenue for the first quarter of FY26, a slight 1.3 percent increase over the Rs. 62,613 crores for the same period in FY25. However, from Rs. 64,479 crores in Q4 FY25, revenue decreased by about 1.6 percent sequentially.
The consolidated net profit for the first quarter of FY26 was Rs. 12,819 crores, which was 4.28 percent higher than the Rs. 12,293 crores reported in the previous quarter and 5.9 percent higher year over year than the Rs. 12,105 crores in Q1 FY25.
Profit growth was also reflected in earnings per share (EPS), which increased to approximately Rs. 35.27 in Q1 FY26 from Rs. 33.28 in Q1 FY25 and Rs. 33.79 in Q4 FY25.
The net margin of the company stands at 20.1 percent.The company’s cash from operations was Rs. 12,804 crores, or 100.3 percent of its net income. With a net addition of 6,071 employees year over year, the total workforce reached 613,069, and the attrition rate was 13.8 percent. As of June 30, 2025, the business had filed 8,987 patent applications, including 171 during the quarter, and received 4,939 patents, including 119 during that same quarter.
Interim Dividend
For the first quarter of FY26, Tata Consultancy Services (TCS) has declared an interim dividend of Rs. 11 per equity share. Shareholders who hold shares on the record date, which has been set as July 16, 2025, are eligible for the dividend. The dividend will be paid out on August 4, 2025, in accordance with the company’s filing with the stock exchanges.
Management View
According to TCS CEO K. Krithivasan, a fall in demand was caused due to geopolitical and global economic uncertainties. New services did well, though, and the business closed a lot of deals during the quarter. With AI-driven business transformation, vendor consolidation, and cost optimization, TCS keeps assisting its clients.
About the company
Founded in 1968 and a member of the Tata Group, Tata Consultancy Services (TCS) is a world leader in technology services and digital transformation. With more than 607,000 consultants spread across 55 countries and 180 delivery centers, TCS is renowned for its strong customer relationships, engineering prowess, and innovation. The business establishes enduring alliances and assists customers in adjusting to each technological phase, from mainframes to artificial intelligence.
Analyst Outlook
With regard to TCS, Nomura has maintained its “Neutral” rating but lowered the price target from Rs. 3,820 to Rs. 3,780, citing uncertain growth prospects for FY26. Nomura does not anticipate a substantial improvement in margins in the upcoming year, despite the optimism of management.
JP Morgan lowered its target price for TCS from Rs. 3,850 to Rs. 3,650 while keeping its rating at ‘Neutral’. It mentioned TCS’s weak start to FY26, with management attributing it to unforeseen difficulties in US trade negotiations and geopolitical uncertainties impacting various industries.
Written by Akshay Sanghavi
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