HCLTech Reports Strong Q2 Growth Driven by Record Contract Wins of $3.3 Billion

HCLTech's Stellar Second Quarter Performance

HCLTech, one of the leading global technology firms, recently shared its financial results for the second quarter ending September 30, 2026. The company reported a robust revenue growth, with total earnings reaching $3.7 billion, reflecting a year-over-year increase of 2.2%. In constant currency terms (CC), this growth was slightly higher at 2.6%. This performance underscores HCLTech's strong market position and strategic focus on advancing AI solutions, which have quickly become a key revenue driver.

Unprecedented Contract Wins

During this quarter, HCLTech secured new contracts worth an impressive $3.3 billion, marking a 27% increase compared to the previous year. This substantial surge in contract wins brings the total contract value for the first half of the fiscal year to a record high. CEO C Vijayakumar expressed confidence in the company’s trajectory, attributing this growth to the successful uptake of advanced AI proposals by clients.

The EBIT margin expanded to 18.2%, reflecting an increase of 131 basis points from the prior quarter. The services segment especially thrived, with a 3% quarter-over-quarter growth driven by advancements across various verticals and regions. Revenue from advanced AI solutions boomed with a quarterly growth of 28.4%, resulting in annualized revenues of $876 million, a clear testament to HCLTech's competitive edge in the tech industry.

Service Revenue Boost

Revenue growth in services was propelled particularly by IT and business services, which rose 4.4% year-over-year in constant currency. Additionally, engineering and R&D services recorded a 2.1% annual growth. HCLSoftware also demonstrated significant performance with an annual recurring income of $1.13 billion. Notably, annual revenue per employee reached $65,400, reflecting a 2.4% year-over-year increase, indicating efficient utilization of resources.

Sector and Regional Growth

In terms of industry performance, the retail and packaged consumer goods sector led with a notable 14% year-over-year growth in constant currency. Financial services also contributed positively, marking a 7.1% rise, while technology and services sectors saw a 5.9% increase. The geographical distribution of this growth showed the US positioned at a 3.5% increase year-over-year in constant currency, whereas India exhibited the fastest growth rate at 21.8% annually.

HCLTech revised its revenue growth forecast for the fiscal year 2027, now anticipating a range between 2.5% to 4% year-over-year, with service growth projected between 3% to 4%. The EBIT margin expectation ranges from 17.5% to 18.5%, while the company declared a dividend of 12 rupees per share for the quarter.

Record Net Profit

In terms of profitability, HCLTech reported net earnings of 5.132 billion rupees for the quarter, translating to an 11% increase from the previous quarter and a 21.2% increase on an annual basis. This growth in net income suggests not only impressive revenue figures but also enhanced operational efficiencies.

Expanding Workforce and Diversity Initiatives

The company expanded its workforce by adding 6,450 new employees, including 6,136 fresh graduates, during this quarter. Remarkably, female representation in the workforce reached 30%, indicating a commitment to diversity in hiring practices.

Strategic Alliances and New Contracts

Furthermore, HCLTech announced a significant global partnership with Anthropic to enhance enterprise adoption of agent-based AI solutions, focusing on security and governance. This collaboration highlights HCLTech's commitment to leading in technological innovation and meeting rising market demands.

Among the notable advanced AI contracts secured this quarter, HCLTech was chosen by a US-based AI firm as a strategic partner for its AI Factory and by a Fortune Global 50 company in Europe to implement an AI-driven operational model.

HCLTech’s ongoing recognition as one of the top firms globally by TIME magazine, alongside other accolades from Forbes and Newsweek, reinforces its status as an employer of choice and a leader in the consultancy space.

Conclusion

With its robust growth trajectory, strategic partnerships, and commitment to innovation, HCLTech is well-positioned for continued success. As it navigates the evolving technology landscape, the company remains focused on delivering value to its clients across diverse sectors through advancements in AI and technology solutions. To learn more about HCLTech’s offerings, visit HCLTech website.