Shares of Tata Consultancy Services (TCS) are likely to remain under pressure after top brokerages flagged a disappointing Q4FY25 performance and trimmed earnings estimates for FY26 and FY27. The company’s Q4 results missed street expectations on several fronts, including revenue growth and operating margins. Analysts also pointed to a weak outlook amid discretionary spending cuts and delays in deal decisions, particularly from clients in the US and Europe.
Nomura maintained a Neutral rating on the stock while cutting the target price to ₹3,490. “More misses than hits,” Nomura noted, adding that growth visibility for FY26 remains hazy. It has cut FY26-27 EPS estimates by 2-3%, and values the stock at 21.4x FY27F EPS.
Goldman Sachs retained a Buy rating but lowered the target price to ₹3,960. The firm cited delays in project ramp-ups and increased scrutiny on discretionary spending. “We further reduced FY26-27 revenue estimates by up to 3%,” Goldman added, noting that the slower decision-making environment could persist until early or mid-FY26.
Jefferies downgraded its outlook to Hold, with the target price lowered to ₹3,400. The firm flagged margin slippage as a key disappointment, and expects only an 8% EPS CAGR over FY26-28. “Derating risks are limited at 22x PE, but upside is capped until there is clarity on US GDP recovery,” Jefferies added.
