TCS shares trade flat ahead of Q1 results: What to expect?
The shares of Tata Consultancy Services (TCS) were trading flat on July 10, ahead of the firm's Q1 FY26 results announcement, which will effectively open the earnings season for the IT pack.
The shares of the IT major were trading with minor gains and losses in the morning. At 10.30 am, the stock was up 0.02 percent to hover around Rs 3,384 apiece.
The company is set to release its results for the April-June quarter of the ongoing financial year 2026 in the post market hours of July 10. While intimating stock exchanges about the same, the company had said that its board will meet on July 10 to consider and approve the results and a dividend.
TCS shareholders eye dividend announcement; record date announced:
The record date to determine the eligibility of the shareholders set to receive the possible dividend has been set at July 16. "The interim dividend, if declared, shall be paid to the equity shareholders of the Company whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Wednesday, July 16, 2025, which is the Record Date fixed for the purpose," the company said.
What to expect from TCS Q1 results?
Analysts have suggested that the IT sector may see a soft earnings season, amid global uncertainties. "If the final U.S. tariffs are pushed on the consumer, U.S. inflation will rise, which is injecting continued uncertainty for global corporations and could drag growth in IT," said Girish Pai, analyst at BOBCAPS.
Equirius Capital expects TCS' US revenue to dip sequentially by 0.4 percent in CC terms. It noted that tepid growth will largely be driven by expected ramp down in BSNL deal and some softness in sales growth in international markets. The firm expects EBIT margins to improve marginally as soft demand will likely result into lower operating. "Equirus expects material dip in TCV QoQ given seasonal softness," it added.
ICICI Securities has projected TCS to report a decline of 3.4 percent CC, "led by $300 million quarterly ramp-down from BSNL deal, partly offset by resilient growth in international markets led by BFSI".
Axis Securities expects TCS revenue to fall 0.3 percent sequentially in Q1, driven by the impact from BSNL deal. "EBIT margin to remain flattish by 60 bps during the quarter," it said.
Ashika Institutional Equity Research expects TCS to report a sequential decline of 0.5 percent in USD revenue, amid the likely revenue impact of the BSNL deal ramp down.
What to watch out for in TCS Q1 results?
The key things to watch out for in TCS quarterly show include demand outlook in BFSI, retail, communication, hi-tech and other key segments, as well as any impact of volatile macro environment and tariff issues on demand. The firm's deal pipeline, outlook on CY25E/FY26E IT budgets, any further update on growth strategies as well as possible wage hike and new deal with BSNL will be in focus.
TCS share price history
TCS shares have dropped over 2 percent in the past one month, and nearly 21 percent in the past six months. The stock is down around 18 percent in 2025 so far. The sharp fall came on the back of global uncertainties, buoyed by US President Donald Trump's tariff flip flops.
The stock, which is a notable constituent of benchmark indices Sensex and Nifty 50, currently has a P/E ratio of over 25.
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