HCLTech reported a strong Q3 FY26, marked by robust revenue growth and a focus on AI-powered solutions. Revenue reached $3.79 billion, a 4.8% YoY increase. Net new bookings were strong at $3 billion, up 17% QoQ and 43% YoY. The company raised its full-year services revenue growth guidance to 4.75%-5.25% in constant currency. HCLTech continues to see significant demand for its Al capabilities.
Financial Performance
HCLTech’s Q3 FY26 revenue reached $3.79 billion, reflecting a growth of 4.8% year-over-year (YoY) and 4.2% quarter-over-quarter (QoQ) in constant currency. Services revenue grew 5% YoY, while Engineering and R&D Services increased by 10.8% YoY. HCLSoftware delivered strong performance with a 3.1% YoY growth. The company also crossed $15 billion in annualized revenue.
Profitability and Margins
The operating margin came in at 18.6%, which includes restructuring costs, reflecting a 111 basis points QoQ increase. Net income for the quarter reached $537 million. Diluted EPS for the last 12 months came in at INR 63.35. The board declared an interim dividend of INR 12 per share.
New Bookings
Net new bookings were strong at $3 billion, which is a 17% QoQ and 43% YoY growth. Bookings momentum was driven by traction in applications and engineering and R&D services, accounting for 63%. The company delivered strong ACV booking, the highest in the last four years.
AI Initiatives
HCLTech highlighted its Al propositions, which are driving overall business growth. The company is seeing increased demand for physical Al, Al factory, and custom silicon engineering. The company has trained over 38,000 employees on GenAl and 600+ on responsible Al. They also launched OEM aligned joint offerings with Dell, HPE, Cisco, NVIDIA, AWS, Azure, and GCP for Al factory services.
Key Deals and Wins
HCLTech won a mega 5-year strategic engagement with a global apparel retailer with a TCV of $473 million to serve as its long-term Al-led technology partner. It was selected by a Europe-based global food major to design and implement a greenfield IT setup and build an Al-powered digital foundation.
Guidance
The company raised its full-year services revenue growth guidance to 4.75% to 5.25% in constant currency terms and company-level guidance to 4% to 4.5% in constant currency terms. HCLTech remains on track to deliver on its full-year EBIT margin guidance of 17% to 18%.
Other Business Updates
HCLTech has expanded its presence across multiple countries, including India, where it sees strong acceleration. Sandeep Kumar Saxena will now lead the India business as part of his portfolio. The company acquired Telco Solutions Business from Hewlett Packard Enterprise (HPE), Jaspersoft and Wobby during the quarter.
Source: BSE
