#USA #New York #HCLTech #Q2 Results #AI Revenue

HCLTech's Outstanding Q2 Results

HCLTech, a major player in the global technology landscape, has recently unveiled its financial outcomes for the second quarter ending on September 30, 2026. The results have exceeded expectations, particularly with record deal bookings amounting to $3.3 billion, reflecting a remarkable year-on-year increase of 27%. This impressive performance has propelled the company's first-half bookings to an all-time high, illustrating HCLTech's robust position in the tech sector.

Financial Highlights

For this quarter, HCLTech reported total revenue in USD of $3.7 billion, marking a 2.2% increase year-over-year. When adjusted for constant currency growth, the revenue saw an increase of 2.6%.
C Vijayakumar, the CEO and Managing Director of HCLTech, expressed optimism about the company’s prospects, stating, "We delivered a strong quarter with impressive new bookings, and we've experienced enhanced EBIT margins, now at 18.2%, a rise of 131 basis points quarter-over-quarter."

Services have also shown a sector-wide growth of 3% quarter-over-quarter, with advancements noted in various verticals and geographical areas. Revenues from advanced AI stand out, having surged by 28.4% quarter-over-quarter and a staggering 78% year-over-year in constant currency. This positive trend validates the effectiveness of HCLTech's AI propositions in meeting client demands, ultimately positioning the company well for sustainable growth.

Sector-wise Performance

The growth in services revenue was chiefly attributed to IT and Business Services, which expanded by 4.4% year-over-year in constant currency. Engineering and R&D services reported a steady increase at 2.1% year-over-year. HCLSoftware’s annual recurring revenue also reached $1.13 billion, with the revenue generated per employee amounting to $65.4K, a 2.4% year-on-year increase.

Among the most lucrative sectors, the Retail and Consumer Packaged Goods industry saw a notable growth of 14% year-over-year in constant currency, further highlighting HCLTech's capabilities in catering to diverse industry needs. Financial Services followed closely with a growth rate of 7.1%, and Technology and Services recorded a 5.9% year-on-year growth. The geographical data was equally impressive; the U.S. saw a growth of 3.5%, while India surged with a remarkable 21.8% year-over-year growth rate.

Outlook and Future Initiatives

In consideration of this strong performance, HCLTech has adjusted its fiscal year 2027 revenue growth guidance to a range of 2.5% to 4% in constant currency, alongside a services revenue growth projection of 3% to 4%. The EBIT margin is anticipated to stabilize between 17.5% and 18.5%. Additionally, HCLTech has declared a quarterly dividend of ₹12 per share.

Highlighting their commitment to workforce growth, HCLTech expanded its team by adding 6,450 new employees in this quarter, which includes 6,136 fresh hires. The measures to increase gender diversity were also fruitful, achieving a 30% female representation in their workforce.

Strategic Partnerships

In keeping with its trajectory towards innovation, specifically within the AI domain, HCLTech announced a strategic Global Premier Partnership with Anthropic. This collaboration is geared towards enhancing enterprise workflows through Agentic AI and emphasizing safety and cybersecurity. HCLTech will integrate Anthropic's technologies, such as Claude and Cowork, into select enterprise products to streamline operations and enhance client offerings.

Key Deal Wins

Recent successes in securing significant deals showcase HCLTech’s capabilities:

• - A prominent AI-native company in the U.S. has partnered with HCLTech to enhance its AI Factory services.
• - A neocloud provider in the U.S. enlisted HCLTech for developing robust AI infrastructure essential for large-scale AI applications.
• - A manufacturing firm in Europe selected HCLTech for an AI-driven quality assurance transformation utilizing a platform named VisionX.

Other notable engagements included partnerships with a Fortune Global 50 company for an AI-driven operating model and an FMCG leader for a comprehensive IT operational overhaul involving AI integration across multiple domains.

Recognition and Future Growth

In addition to these achievements, HCLTech has consistently been recognized for its excellence, being included in TIME’s World’s Best Companies list for three consecutive years and recognized by Forbes and Newsweek for its workplace culture and management consulting services.

With a consolidated revenue of approximately $14.8 billion over the 12 months ending September 2026, HCLTech remains poised to lead in providing innovative technology solutions across various industries. As the company looks ahead, its strategic focus on advanced AI and sustainable growth will undoubtedly keep it at the forefront of the global technology arena.

Through its commitment to innovation, employee welfare, and client satisfaction, HCLTech is set to enhance its market presence even further in the upcoming years.