TCS shares in focus after analysts cut price targets post Q4 results. Should you buy, sell or hold?

Tata Consultancy Services (TCS) shares will be in focus on Friday after the IT major reported a weaker-than-expected Q4 performance. Consolidated net profit for Q4FY25 declined 1.7% year-on-year to Rs 12,224 crore, falling short of the analysts’ estimate of Rs 12,650 crore.

In the year-ago quarter, the net profit was Rs 12,434 crore.Revenue from operations rose 5.3% YoY to Rs 64,479 crore, also missing the ET NOW poll estimate of Rs 64,856 crore.



Should you buy, sell, or hold TCS' stock? Here's what analysts say:CentrumCentrum upgraded TCS to ‘Buy’ with a revised target price of Rs 4,211 (down from Rs 4,589), valuing the stock at 25x FY27E EPS. While it flagged muted near-term demand due to macro and geopolitical uncertainties and slower client decision-making, it pointed to strong GenAI deal momentum as a key positive.Centrum sees margin tailwinds from better utilisation, pyramid optimisation, automation, and selective pricing.

However, it cut FY26 and FY27 EPS estimates by 3.8% and 4.6%, respectively.

It expects TCS to deliver a revenue CAGR of 8.9%, EBITDA CAGR of 11.2%, and PAT CAGR of 12% over FY25–27E.

Choice BrokingChoice Broking maintained a ‘Buy’ rating with a reduced target price of Rs 3,950, valuing TCS at 24x FY27E EPS of Rs 164.6. It noted that while TCS has crossed the Rs 30,000 crore topline and maintained industry-leading margins, macro uncertainty could impact client spending decisions.

It expects growth in FY26 to improve compared to FY25 but highlighted risks to discretionary spending. The brokerage forecasts Revenue/EBIT/PAT to grow at a CAGR of 7.2%/10.

7%/10.8% over FY25–27E.Also Read: Stocks in news: TCS, Sun Pharma, Bharti Hexacom, Eternal, Greaves Cotton, Tata Steel(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.

These do not represent the views of The Economic Times).