Brokerages showed mixed reactions to Tata Consultancy Services’ (TCS) September-quarter results announced on October 9, 2026, with target prices ranging from ₹1,800 to ₹2,630. The company reported EBIT margins of 24 percent for the quarter and annualised AI revenue exceeding $3 billion, highlighting its growing focus on artificial intelligence, according to thehindubusinessline.com.
Goldman Sachs maintained a Buy rating on TCS with a target price of ₹2,210, while Nomura set a higher target of ₹2,630 and JPMorgan an Overweight rating with a ₹2,300 target. Kotak Institutional Equities retained an Add rating with a ₹2,320 target. Conversely, Citi downgraded TCS to Sell, lowering its target price to ₹1,840 from ₹1,875. Jefferies kept an Underperform rating with a ₹1,800 target, and HSBC and CLSA held their ratings at Hold with targets of ₹2,350 and ₹2,038, respectively, per thehindubusinessline.com.
Analysts expressed concerns over muted growth and margin pressures despite healthy international revenue growth and sequential headcount additions. Continued investment spending, subdued deal bookings, and uncertainty about sustained revenue growth recovery were flagged as key risks. The company’s strong AI revenue stream, crossing $3 billion annually, underscores its strategic pivot amid these challenges, thehindubusinessline.com reported.
TCS’s September-quarter EBIT margin stood at 24 percent, reflecting operational efficiency amid investment and growth challenges. The company’s AI revenue milestone of $3 billion annualised marks a significant benchmark in its technology services portfolio, as detailed by thehindubusinessline.com.