Tata Consultancy Services is set to provision an additional $70 million in the first quarter of fiscal 2027, bringing its total provision to $220 million, following the US Supreme Court’s decision to decline a review of a lower court ruling in a long-standing trade secrets dispute with Computer Sciences Corporation (now DXC Technology).
Illustration: Dado Ruvic/Reuters
Key Points
- TCS will make an additional provision of $70 million in Q1 FY2027 as a one-time exceptional expense.
- The decision follows the US Supreme Court’s refusal to review a lower court ruling in a legal dispute with Computer Sciences Corporation (now DXC Technology).
- TCS had previously provided $150 million for the matter in its books of accounts.
- The legal dispute stems from a trade secrets case where TCS was found liable for $56.1 million in compensatory damages and $112.3 million in exemplary damages.
- The US Court of Appeals for the Fifth Circuit had upheld the damages award but vacated an injunction, directing a reassessment.
Tata Consultancy Services (TCS) on Tuesday announced it would make an additional provision of $70 million in the first quarter of fiscal 2027.
This decision comes after the US Supreme Court declined to review a lower court ruling in a legal dispute with Computer Sciences Corporation (CSC), which is now part of DXC Technology.
Additional Provision and Financial Impact
In a filing with the BSE, TCS stated that it had already provided $150 million for the matter in its books of accounts, in accordance with applicable accounting standards.
The company confirmed that it “will make necessary provision now for the incremental amount of $70 million towards damages, interest and legal cost, as a one-time exceptional expense, in Q1 FY2027”.
TCS had previously disclosed this litigation in exchange filings in June 2024 and November 2025.
US Supreme Court’s Decision
Providing an update on the suit filed by Computer Sciences Corporation/DXC Technology Company, TCS informed on Tuesday that the US Supreme Court has declined to review a lower court ruling in the lawsuit.
“In continuation of our earlier communication…dated June 14, 2024 and…dated November 22, 2025, we wish to inform you that the United States Supreme Court has denied our petition for a writ of certiorari to review the judgment of the United States Court of Appeals for the Fifth Circuit on June 15, 2026, in the above matter,” the company stated.
Background of the Legal Dispute
Earlier, TCS had faced a legal setback when the US Court of Appeals for the Fifth Circuit upheld a $194.2 million damages award and ruled in favour of Computer Sciences Corporation in a years-long trade secrets case.
In June 2024, TCS had updated the BSE about receiving an “adverse judgement” passed by the United States District Court, Northern District of Texas, Dallas Division.
At that time, the company asserted it had strong arguments and intended to defend its position through review petition/appeal to the appropriate court.
It had informed that in a suit by Computer Sciences Corporation (CSC)/DXC Technology against TCS, alleging misappropriation of its trade secrets, the court had ordered that the company was liable to CSC for $56.1 million in compensatory damages and $112.3 million in exemplary damages.
As per that filing, the court also assessed that the company was liable for $25.7 million in prejudgment interest through June 13, 2024.
“Under the terms of the Court orders, the company is liable for misappropriation of trade secrets under the Defend Trade Secrets Act of 2016 (DTSA),” it said.
Another filing/update followed in November 2025, where TCS informed that the United States Court of Appeals for the Fifth Circuit had issued an adverse ruling in the matter and confirmed the District Court decision on damages.
“However, the Court has vacated the previously granted injunction and directed the United States District Court, Northern District of Texas, Dallas Division, to reassess the injunction order basis direction of the Appeals Court,” the filing in late 2025 had mentioned.
At that point, the company stated it was evaluating various options, including review and appeal before the appropriate courts, and intended to vigorously defend its position.
It also confirmed that necessary provisions related to this matter would be duly made in the books of accounts and financial statements in accordance with applicable accounting standards.
Earlier Development
Tata Consultancy Services on Tuesday said it would make provision of additional $70 million in the first quarter of fiscal 2027 after the US Supreme Court declined to review a lower court ruling in a legal dispute with Computer Sciences Corporation, now part of DXC Technology.
TCS, in the BSE filing, said it has already provided $150 million for the matter in its books of accounts in accordance with applicable accounting standards.
The company “will make necessary provision now for the incremental amount of $70 million towards damages, interest and legal cost, as a one-time exceptional expense, in Q1 FY2027”.
TCS had disclosed the litigation in earlier exchange filings in June 2024 and November 2025.
