TCS to take $70 mn hit after US SC rejects appeal in trade secrets case

Tata Consultancy Services will book a one-time exceptional charge of $70 million after the US Supreme Court rejected its appeal in a trade secrets case, bringing its total exposure in the matter ‌to $220 million, the firm said on Monday.

The US Supreme Court on June 15 let stand a $168 million damages award in favour of DXC Technology.

TCS, which had already set aside $150 million for the case, said it will book a further $70 million towards damages, interest and legal costs as a one-time exceptional charge in the first quarter of 2027.

The ‌Indian firm's net profit in the fourth quarter stood at ₹13,718 crore ($1.45 billion).

The case stems from a 2019 lawsuit filed in Dallas federal court by DXC's predecessor, Computer Sciences Corporation, which accused TCS of hiring around 2,200 Transamerica, another insurance company, employees and using their inside access to build a rival life-insurance platform.

jury in 2023 recommended TCS ‌pay $210 million for willfully stealing trade secrets, but US District Judge Brantley Starr cut that to $168 million, $56 million ‌in compensatory and $112 million in punitive damages, a decision the 5th ‌US Circuit Court of Appeals upheld in 2025.

TCS argued to the Supreme Court that DXC should not have won ‌unjust enrichment damages without proving actual losses, and that the punitive award was excessive. DXC said the lower court's ruling needed ‌no further review.