TCS, HCL Tech Q3 Results: Steady Performance, AI Traction, But Uneven Growth Persists

• TCS and HCL Technologies delivered Q3 results largely in line with Street expectations, signaling a potential move past the sector's most challenging phase.
• HCL Tech reported better-than-expected revenue growth of 4.2% QoQ in constant currency and raised its FY26 revenue guidance, driven by nearly $3 billion in new deal wins.
• TCS showed steady deal momentum with $9.3 billion in total contract value and stable margins at 25.2%, slightly exceeding revenue consensus.
• Both companies demonstrated meaningful traction in AI-led projects, with HCL Tech reporting $146 million in AI-related revenue and TCS seeing steady growth in short-cycle AI projects.
• Despite positives, growth remains patchy due to one-off provisions (Rs 956 crore for HCL Tech), restructuring costs, and seasonal weakness in key markets like North America and the UK.

Why It Matters: Indian IT bellwethers TCS and HCL Tech show stable Q3 results with AI traction, but uneven growth limits re-rating.