TCS to take additional $70 million provision in Q1FY27 after US Supreme Court rejects appeal in DXC case
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Tata Consultancy Services (TCS) on Tuesday said it will make an additional provision of $70 million in the first quarter of FY27 after the US Supreme Court declined to review a lower court ruling in its long-running legal dispute with Computer Sciences Corporation (CSC), now part of DXC Technology.
In a regulatory filing with the BSE, TCS said it had already recognised a provision of $150 million in its books in line with applicable accounting standards. Following the latest development, the company will record an incremental provision of $70 million toward damages, interest and legal expenses as a one-time exceptional item in Q1FY27.
The update comes after the US Supreme Court denied TCS’s petition for a writ of certiorari seeking review of the judgment delivered by the United States Court of Appeals for the Fifth Circuit.
“In continuation of our earlier communications dated June 14, 2024 and November 22, 2025, we wish to inform that the United States Supreme Court has denied our petition to review the judgment of the United States Court of Appeals for the Fifth Circuit on June 15, 2026,” TCS said in its filing.
The litigation stems from a trade secrets dispute initiated by Computer Sciences Corporation, which was later acquired by DXC Technology. Earlier, TCS suffered a legal setback after the Fifth Circuit upheld a damages award of $194.2 million in favour of CSC in the years-long case.
Despite the additional provision, the company indicated that the expense would be treated as a one-time exceptional item.
Meanwhile, TCS last week announced an expansion of its partnership with Oracle through the launch of India’s first Oracle AI Data Platform Lab and Center of Excellence (CoE) in Kolkata. The facility, located at Delta Park Lords in Kolkata, aims to accelerate enterprise adoption of artificial intelligence and data-led transformation initiatives.
According to TCS, the centre will support organisations in overcoming challenges such as fragmented data environments, delayed analytics, scalability constraints and operational inefficiencies. The company said the lab will use reusable architectures, industry-specific solutions, and AI accelerators to help enterprises generate actionable insights and deploy automation at scale.