Tata Consultancy Services (TCS) Share Price Today, December 5, 2025: Latest News, AI Bets, Analyst Targets and Stock Outlook

Tata Consultancy Services Ltd (TCS), India’s largest IT services exporter, extended its recent rebound on Friday as investors weighed steady Q2 FY26 earnings, aggressive artificial intelligence (AI) infrastructure plans, and a still‑undemanding valuation after a year of underperformance.

TCS share price on 5 December 2025: steady gains, still far below record highs

On Friday, 5 December 2025, TCS traded in the ₹3,220–₹3,270 range on the NSE and finished around ₹3,260 per share, about 1% higher than the previous close near ₹3,229.² That move built on Thursday’s 1.55% gain, when the stock climbed from ₹3,180 to ₹3,229 with rising volume. ^[1]

Market data from IndMoney and other live tickers show an intraday high close to ₹3,270 and a low around ₹3,222, with volume near 2 million shares – broadly in line with recent trading activity. ^[2]

TCS remains well off its 52‑week peak. The stock’s 52‑week high is about ₹4,494.9 and its low about ₹2,866.6, which means that even after the latest bounce it still trades roughly 27% below the high and about 14% above the low. ^[3]

Short‑term volatility has been modest. Economic Times liveblog data put TCS’s six‑month beta around 0.40, suggesting significantly lower volatility than the broader market, with typical daily price swings around 1–2%. ^[4]

Momentum vs. underperformance: how TCS has traded over different time frames

Fresh analysis from MarketsMojo on 5 December highlights how TCS currently sits at an interesting crossroads: short‑term momentum is improving, but long‑term performance still lags the benchmarks by a wide margin. ^[5]

According to that report:

Over the last 3–4 trading sessions, TCS has logged a gain of about 3.3%, extending a multi‑day winning streak.
Over one month, the stock is up roughly 8.1%, versus about 2.1% for the Sensex, showing near‑term outperformance.
Over three months, returns are around 6% for TCS versus about 5.6% for the Sensex – only slightly better than the index.
Over the past 12 months, however, TCS is down about 27.5%, while the Sensex is up roughly 4.2%.
Year‑to‑date, TCS has fallen about 21%, versus a 9% gain for the Sensex. ^[6]

In other words, the stock has only recently started to claw back some ground after a difficult year, and its relative underperformance is still significant.

MarketsMojo also notes that as of 5 December, TCS trades above its 5‑, 20‑, 50‑ and 100‑day moving averages, but below the 200‑day moving average, implying an improving but not yet fully healed technical picture. ^[7]

Valuation and dividends: quality franchise at a mid‑range multiple

Across multiple data providers, TCS currently trades at a trailing P/E of roughly 23–24x, below the broader Indian software & consulting sector average in the high 20s. ^[8]

MarketsMojo pegs the stock’s P/E near 23.2x vs. an industry average of about 28.5x, suggesting that the market is no longer willing to pay the kinds of peak multiples TCS enjoyed when global IT spending was booming, but it is still assigning a premium to its scale and balance sheet. ^[9]

Income investors also continue to see TCS as a reliable dividend payer:

The company announced ₹11 per share dividends in both Q1 and Q2 FY26, on top of earlier payouts including a ₹30 dividend in June 2025 and a ₹76 dividend in January 2025. ^[10]
On current prices, MarketsMojo estimates a dividend yield around 3.9–4.0%, which is attractive for a large‑cap IT name. ^[11]

Combined with its roughly ₹11.7–11.8 trillion market cap, that puts TCS firmly in the “defensive quality” camp within the Nifty 50, albeit with cyclicality tied to global tech spending. ^[12]

Q2 FY26 earnings: modest growth, strong margins, and restructuring

The latest set of fundamentals investors are trading off is TCS’s Q2 FY26 (July–September 2025) earnings, released in October.

Key numbers from TCS’s filings and subsequent coverage:

Revenue: ₹65,799 crore – up about 3.7% quarter‑on‑quarter and around 2.4% year‑on‑year in reported terms. ^[13]
Net profit: roughly ₹12,075 crore, up 1.3–1.4% YoY but down mid‑single digits QoQ as restructuring costs hit the bottom line. ^[14]
Operating margin: about 25.2%, a 70 bps expansion versus the year‑earlier quarter and a notable improvement on recent levels. ^[15]
Net margin: roughly 19.6%. ^[16]
Total contract value (TCV): about $10 billion, up from $9.4 billion in the previous quarter – a sign that deal flow remains healthy despite a cautious IT spending environment. ^[17]

Reuters and other outlets emphasised that TCS beat consensus revenue expectations but missed profit forecasts, mainly because of restructuring charges and a mixed performance across verticals and geographies. ^[18]

Workforce optimisation and restructuring costs

The most eye‑catching operational headline from Q2 was on headcount and restructuring:

TCS’s total workforce fell by around 20,000 employees in the September quarter, the largest quarterly reduction in its history, taking headcount to roughly 590,000.
The company recorded about ₹1,135 crore in restructuring costs, mostly related to severance.
Management has indicated that workforce optimisation will continue, though without a specific numeric target. ^[19]

For investors, that combination – higher margins, strong cash generation, but sizeable restructuring – suggests a deliberate reset: TCS is trying to preserve its long‑term profitability in a slower demand environment by cutting bench and re‑aligning its talent pyramid.

AI‑first pivot: HyperVault, data centres, and the OpenAI angle

Much of the current debate on TCS stock revolves less around near‑term earnings and more around its AI infrastructure and services strategy.

HyperVault AI data center and TPG partnership

TCS has announced a new AI infrastructure business, HyperVault, focused on building “sovereign” AI‑ready data centers in India. Key disclosed elements from press reports and company communications:

TCS plans to build AI data‑center capacity of about 1 gigawatt over five to seven years, with a total investment estimated at around $6.7 billion (roughly ₹56,000 crore). ^[20]
A planned joint venture structure with private‑equity firm TPG envisions about $2 billion in equity and $4.5–5 billion in debt, with TCS holding a 51% stake. ^[21]
TCS has also highlighted “sovereign cloud” offerings, where both data and compute stay within India, aimed at clients in regulated sectors. ^[22]

This is a capital‑intensive bet that, if executed well, could create an annuity‑like infrastructure revenue stream, but it also adds leverage and execution risk in a highly competitive data‑center market.

ListEngage acquisition: Salesforce + “agentic” AI capabilities

On 9 October 2025, TCS announced the acquisition of US‑based Salesforce specialist ListEngage for $72.8 million, or roughly ₹646 crore, in an all‑cash deal. ^[23]

Key takeaways from multiple disclosures:

TCS is acquiring 100% of ListEngage, a Salesforce Summit partner focused on Marketing Cloud, Data Cloud, Agentforce and AI advisory services. ^[24]
The deal brings over 100 employees and 400+ Salesforce certifications into TCS’s enterprise solutions unit in the US. ^[25]
Management has explicitly framed the acquisition as part of a push into “agentic AI” – systems where AI agents autonomously orchestrate marketing and customer‑engagement workflows. ^[26]

Trade Brains notes that this transaction is one of several deals executed by the big five Indian IT firms in 2025, with cumulative disclosed M&A value across TCS, Infosys, HCLTech, Wipro and Tech Mahindra crossing $750 million as they pursue capability‑driven, AI‑heavy acquisitions. ^[27]

OpenAI–TCS discussions and HyperVault capacity

A recent Economic Times tech newsletter reported that OpenAI is in advanced talks with TCS to lease at least 500 MW of data‑center capacity from HyperVault for its planned Stargate AI infrastructure rollout. ^[28]

According to that report:

OpenAI would be an anchor tenant, with the deal structured as a commercial lease rather than an equity partnership.
TCS intends to keep HyperVault a neutral platform, potentially hosting other large AI players like Anthropic alongside OpenAI. ^[29]

As of 5 December 2025, neither TCS nor OpenAI has formally confirmed a signed contract, so this remains a media‑reported opportunity rather than a guaranteed revenue stream. Investors will be watching closely for any concrete announcements or financial guidance tied to HyperVault.

AI as a margin driver: insights from TCS’s manufacturing study

TCS isn’t just building AI infrastructure; it is also trying to shape the narrative on how AI will change its clients’ economics.

On 3 December 2025, TCS and Amazon Web Services (AWS) released their Future‑Ready Manufacturing Study 2025. The survey of 216 senior manufacturing leaders across North America and Europe produced several notable findings: ^[30]

75% of manufacturers expect AI to be one of the top three contributors to operating margins by 2026.
Only 21% consider themselves “fully AI‑ready”, citing gaps in data, integration and systems.
74% expect AI agents to handle 11–50% of routine production decisions by 2028, pointing to a shift toward semi‑autonomous factories.
67% report improved real‑time supply‑chain visibility from AI initiatives, and over 30% forecast meaningful productivity gains from AI‑led modernisation.

For TCS shareholders, the point is not that this study changes next quarter’s numbers, but that it underscores a trend: clients themselves believe AI will become a major profit driver, yet many lack the full stack of capabilities to get there – a gap that vendors like TCS aim to monetise over the coming years.

Analyst targets, quant forecasts and market sentiment

Street view: mostly positive, but upside looks moderate

Consensus data compiled by S&P and distributed via platforms like IndMoney show: ^[31]

Around 45 analysts actively cover TCS.
Roughly 70–72% rate the stock as “Buy”, about 18% as “Hold” and 10–12% as “Sell”.
The average 12‑month target price is near ₹3,470 per share, with a wide band between roughly ₹1,950 (bear case) and ₹4,680 (bull case).

Using Thursday’s close of ₹3,229.2, that average target implies about 7% upside; versus Friday’s intraday levels around ₹3,260, the implied upside narrows to roughly 6% – signaling that most brokerages see modest, not explosive, upside from current levels. ^[32]

Technical/quantitative forecasts

Technical‑analysis site StockInvest.us, which evaluates TCS based on moving averages and volatility, currently classifies the stock as a “Hold/Accumulate” candidate rather than an outright buy. Key points from its latest update (4 December): ^[33]

TCS has risen in six of the last 10 sessions and is up about 2.6% over the past two weeks, with rising volume – typically a constructive technical sign.
The stock sits in the upper part of a broad, gently rising short‑term trend channel.
The model expects an approximate 2.85% price increase over the next three months, with a 90% probability that the stock will end that period between ₹3,037 and ₹3,346.
Short‑ and long‑term moving averages both generate buy signals, but the model has downgraded its overall conclusion from “Buy” to “Hold” due to minor technical weaknesses and the risk of a pullback from the upper end of the trend.

These algorithmic forecasts should be treated as short‑term technical opinions, not fundamental valuations — but they reinforce the picture of a stock that has bounced, is not extremely stretched, and may now trade in a relatively narrow band unless fresh catalysts emerge.

Retail sentiment and participation

IndMoney’s tracking of user activity suggests that retail interest may have cooled slightly even as the stock has recovered:

Over the last 30 days, the share of IndMoney users holding TCS has fallen by around 20%.
Search interest in TCS on that platform is also down high‑teens percent versus the prior period. ^[34]

That doesn’t mean retail investors are fleeing en masse, but it does hint that the latest rally has not yet sparked a full‑blown “crowd chase” in the name.

Sector and macro backdrop: IT and AI back in favour, but headwinds remain

On the macro side, Indian equities remain near record highs, with IT and financials among the sectors leading recent gains. Intraday updates on 5 December show the Nifty trading above the 26,000 mark, with IT stocks contributing meaningfully to the index performance. ^[35]

However, the global environment for IT services remains mixed:

TCS’s own Q2 numbers show only low single‑digit revenue growth in constant currency, with management acknowledging softness in consumer‑facing verticals and continued caution in North America and Europe. ^[36]
Reuters notes that revenue from regions like North America, the UK and Continental Europe fell year‑on‑year, even as Asia‑Pacific and Middle East/Africa showed stronger growth. ^[37]
The sector faces potential policy headwinds from the US, including floated proposals for outsourcing taxes as high as 25% and higher H‑1B visa fees, both of which would squeeze margins for talent‑intensive IT exporters if enacted. ^[38]

On the flip side, 2025 has seen a renewed M&A push in Indian IT, with firms favouring smaller, capability‑driven acquisitions in AI, engineering and software products – a trend that supports the idea that the big players are using the current demand lull to upgrade their service mix rather than chase pure volume growth. ^[39]

Key risks for TCS shareholders

Looking beyond day‑to‑day price moves, several risks are front of mind for investors evaluating TCS at current levels:

Demand and pricing risk in core IT services
Revenue growth is modest, and certain verticals and geographies are shrinking year‑on‑year. A deeper slowdown in global tech and transformation budgets could keep growth anaemic even as TCS invests heavily in AI infrastructure. ^[40]
Execution risk on HyperVault and AI data centres
Building a multi‑billion‑dollar, gigawatt‑scale data‑center business pits TCS against hyperscale cloud providers and specialised colocation firms. Overcapacity, pricing pressure, or delays in ramping tenants (including potential deals with OpenAI) could dilute returns on capital. ^[41]
Regulatory and geopolitical risk
Proposals in the US to impose higher taxes or fees on outsourced IT work and visas, if implemented in stringent form, would directly affect TCS’s largest market and its ability to deploy on‑site talent. ^[42]
Workforce morale and talent risk
The sharp headcount reduction in Q2 and ongoing restructuring may improve margins, but they also risk impacting employee morale and the firm’s ability to scale quickly if demand rebounds. ^[43]
Valuation risk if growth disappoints
While TCS is cheaper than many peers on P/E, it is not “cheap” in absolute terms. If revenue growth remains stuck in low single digits while investors rotate aggressively into faster‑growing sectors, the multiple could de‑rate further.

Should investors view TCS as a buy, hold or watchlist stock right now?

Different frameworks currently converge on a similar middle‑of‑the‑road conclusion:

Fundamentally, TCS offers steady mid‑20s operating margins, strong cash flows, and a nearly 4% dividend yield. Its AI‑first strategy – from the HyperVault data‑center build‑out to the ListEngage acquisition – positions it to monetise the next wave of cloud and AI spending, but these are multi‑year plays with significant execution risk. ^[44]
Valuation‑wise, the stock trades at a discount to peers but still above typical “bargain” levels, with the sell‑side consensus implying only mid‑single‑digit upside from current prices. ^[45]
Technically, near‑term momentum is constructive – price above shorter moving averages, four‑day winning streak – but both MarketsMojo and StockInvest effectively frame TCS as a “hold/accumulate” rather than a high‑conviction breakout candidate. ^[46]

For long‑term investors who want core exposure to Indian IT and the enterprise AI transformation theme, TCS still looks like a logical anchor holding: large, diversified, cash‑rich, and increasingly aggressive in building AI infrastructure and capabilities.

For short‑er horizon or valuation‑sensitive investors, the case is more nuanced. Much of the obvious bad news (underperformance vs. the index, restructuring, slow growth) is already reflected in the price, but the consensus upside from here is not especially large unless:

AI‑related bets like HyperVault and agentic AI services ramp faster than expected, or
Global IT spending re‑accelerates in a way that reignites high‑teens earnings growth.

As always, any decision to buy, hold or sell TCS should be made in the context of an investor’s overall asset allocation, risk tolerance and time horizon, ideally with the help of a qualified financial adviser. The information above is not personalised investment advice; it is a synthesis of current market data, public filings and independent analyses as of 5 December 2025.