Tata Consultancy Services (TCS) will kickstart the Q4 earnings season, as the IT major is scheduled to announce its financial results for the quarter ended March 31, 2026, later today (April 9). The IT bellwether’s board is also slated to announce its final dividend for the recently concluded financial year 2025-26 (FY26).
Ahead of earnings, TCS share price opened marginally lower at ₹2,554, compared with the previous close of ₹2,559 on Wednesday. However, the IT stock soon pared morning losses and was trading 0.54% higher at ₹2,573.10.
The IT major is likely to post a strong year-on-year (YoY) growth in revenue, supported by the depreciation of the Indian rupee during the quarter. Net profit (PAT) is also expected to register a solid increase compared to the same period last year.
TCS Q4 results 2026 preview
Brokerage firm Motilal Oswal Financial Services estimates that TCS will post an 8% YoY increase in revenue and a 12.1% YoY rise in reported PAT for the quarter.
It also expects EBIT margins to improve to 25.1% from 24.2% a year ago, supported partly by favourable currency movements, as wage-related pressures ease and one-off impacts subside.
Seema Srivastava, Senior Research Analyst at SMC Global Securities, however, expects the results to show some impact of a cautious global demand environment and continued moderation in discretionary IT spending.
“On a year-on-year basis, growth is expected to remain healthy; however, sequential momentum may stay constrained due to seasonality and persistent macroeconomic uncertainties. Margins are likely to remain largely flat on a quarter-on-quarter basis, aided by improved utilisation, cost optimisation initiatives, and operating leverage from large deal execution, though any upside may be limited by pricing pressures and heightened competitive intensity,” she said.
Revenue growth will be supported by sustained deal wins, ramp-up of large contracts, including the BSNL deal, and gradual recovery in key verticals such as BFSI and manufacturing.
TCS Q4 results 2026: Key focus areas
According to Srivasatava, key monitorables for the quarter include management commentary on demand outlook, particularly progress in agentic artificial intelligence (AI) initiatives over the past quarter, the timeline for convergence of growth with peers and key drivers thereof, the impact of global capability centre (GCC) ramp-ups as a structural growth lever, progress on planned data centre investments, and areas of strategic focus for inorganic expansion following recent acquisitions.
Additionally, investors will track margin outlook amid competitive pressures, commentary on the US macro environment, and updates on employee restructuring.
Should you buy TCS stock ahead of Q4 results 2026?
Mahesh M Ojha, AVP – Research at Kantilal Chaganlal Securities, believes that TCS is currently trading at an attractive valuation, supported by a healthy dividend yield, making it a compelling long-term investment opportunity.
“Investors with a longer horizon may consider accumulating the stock and adopting a buy-and-hold strategy, with an initial target of ₹3,250. Post this level, the stock can be reassessed based on prevailing market conditions and business performance,” Ojha said.
Meanwhile, Sumit Pokharna, VP – Fundamental Research, Kotak Securities, also remains bullish on TCS from a longer-term perspective; however, in the short term, the stock may remain volatile based on quarterly results insights.
“While TCS is still expected to lead revenue growth among Tier-1 IT firms. Investor focus is likely to shift beyond headline numbers toward forward-looking factors such as progress in agentic AI and whether it alters deflation assumptions, the timeline for growth convergence with peers like Infosys and Tech Mahindra, the impact of GCC ramp-ups, data centre investments, and the company’s inorganic growth strategy following recent acquisitions,” Pokharna said.
On the technical outlook, Anshul Jain, Head of Research at Lakshmishree, said that TCS has undergone a sharp 30% correction in just 31 sessions, followed by an 8-day base formation — indicating stabilization after a steep decline.
Jain further noted that the recent bounce from this base suggests early signs of demand returning, supported by bullish divergence on RSI and MACD, highlighting weakening downside momentum.
“A sustained move can lead to a test of the 50-day EMA near ₹2640, and a breakout above this level may extend the recovery towards ₹2750. However, failure to hold the base lows would invalidate the rebound and revive selling pressure,” Jain said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.