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Tata Consultancy Services to Book $70 Million Exceptional Expense in Fiscal Q1 in DXC Trade Secrets Case

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Tata Consultancy Services (NSE:TCS, BOM:532540) said it will recognize an additional $70 million as a one-time exceptional expense in Q1 FY27 toward damages, interest and legal costs related to its ongoing dispute with DXC Technology.

The company said it has already provided $150 million in its books for the matter in line with applicable accounting standards.

The U.S. Supreme Court on Monday rejected Tata Consultancy's petition seeking review of a lower court ruling in a trade secrets dispute with DXC Technology.

The case stems from a 2019 lawsuit filed by DXC's predecessor Computer Sciences Corp, which alleged misuse of proprietary life-insurance software to build a competing platform. A jury in 2023 had recommended $210 million in damages, later reduced to $168 million by a U.S. court.

Tata Consultancy shares rose nearly 2% in recent trade.

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