TCS Q3 Preview: Flat Revenue, Steady Margins Expected; AI Monetisation in Focus

• Tata Consultancy Services (TCS) is set to announce its Q3 FY26 results on January 12, with muted but stable performance anticipated.
• Q3 FY26 revenue is expected to be flattish sequentially, reflecting a cautious global tech spending environment.
• AI-related services are a key focus, generating $1.5 billion in annualised revenue and growing faster than the core business.
• TCS aims to become the "world's largest AI-led technology services company" and has invested $6.5 billion in sovereign AI data centres in India.
• Investors will monitor management commentary on AI monetisation, deal pipeline, and margin sustainability, especially regarding wage hikes and potential penalties.

Why It Matters: TCS Q3 results anticipate flat revenue and stable margins, with AI growth and strategic investments taking center stage.