HCL Technologies reported a $14.7 billion consolidated revenue for FY’26, reflecting a 3.9% constant currency growth. Despite Q4 revenue challenges of $3.7 billion due to discretionary spending cuts in the Telecom sector and software seasonality, the company maintains a strong AI-focused strategy. HCLTech declared an interim dividend of INR 24 per share, with a commitment to distribute at least 75% of net income to shareholders over the next five years.
Financial Performance Overview
For the quarter ended March 31, 2026, HCL Technologies reported revenue of $3.7 billion, a 3.3% sequential decline, though it achieved a 2.4% year-over-year growth in constant currency. For the full fiscal year FY’26, the company reached a consolidated revenue of $14.7 billion. Operating margins stood at 17.2% for the full year, with the company emphasizing resilience through its Project Ascend initiative.
Strategic AI Growth
The company continues to advance its AI-led growth strategy, categorizing its services into AI-disrupted, AI-amplified, and AI-native sectors. HCLTech recorded $620 million in annualized Advanced AI revenue. Notable wins include a $100 million+ AI factory program and significant investments in ASIC development for a major semiconductor client. The firm has trained over 135,000 employees in GenAI technologies to support these strategic pillars.
Segment and Client Developments
The Services business grew 4.8% for the year, led by a 9.8% increase in Engineering and R&D Services. While the software segment faced a 14.1% year-over-year revenue decline, management remains optimistic about pivoting toward subscription-based and steady revenue streams. The company also announced the acquisition of Finergic Solutions to bolster its Financial Services portfolio and Wobby to enhance data intelligence offerings.
Future Outlook and Guidance
Looking ahead to FY’27, HCL Technologies has provided a revenue growth guidance of 1% to 4% in constant currency. While two specific client challenges in the US are expected to create a 50 basis point growth headwind, the firm expects growth to be supported by large deal ramp-ups and a robust pipeline. The board has extended the capital allocation policy for another five years, reinforcing a commitment to returning value to shareholders.
Source: BSE
