HCLTech Achieves Record Q1 with Unprecedented Deal Bookings Reaching $2.4 Billion

HCLTech Posts Impressive Financial Growth in Q1

HCLTech, a global leader in technology service and consulting, has unveiled its strong financial performance for the first quarter ending June 30, 2026. Highlighting an impressive trajectory, the company recorded a staggering net new bookings amounting to $2.4 billion. This figure represents the highest total for any first quarter in the company's history, showcasing HCLTech's increasing prominence in the tech sector.

C Vijayakumar, the CEO and Managing Director of HCLTech, remarked on the company's results, attributing the achievements to their leading position in AI-led transformations. The firm's total USD revenue was reported at $3.65 billion, reflecting a 3% year-over-year increase. Moreover, the revenue in constant currency experienced a growth of 2.6% year over year. The considerable increase in Advanced AI revenue, which grew by 62.1% from the previous year, underscores the rising demand for AI technologies among enterprises.

In another significant note, the company's quarterly Advanced AI revenue reached $171 million, bolstered by a strong 10.6% quarter-over-quarter increase. These results highlight the growing trend of companies embracing AI solutions to enhance operational efficiency. The company's robust growth performance is complemented by an improvement in operational margins, instilling confidence that HCLTech is well positioned to outpace market growth in the forthcoming years.

Growth Across Services and Industries

HCLTech's service revenue increased by 4.2% year over year in constant currency, demonstrating ongoing momentum in the IT and Business Services sector. The annual recurring revenue from HCLSoftware was recorded at $1.06 billion, marking a 2% year-over-year growth in constant currency. The company's revenue per employee also saw an increase, now standing at $65,500, reflecting a 3.3% growth from the previous year.

Among the industries, Public Services emerged as the leading vertical with a remarkable growth rate of 12% year over year in terms of constant currency. Retail and Consumer Packaged Goods followed closely behind, achieving a growth rate of 10.1%, while Technology and Services recorded a 7.3% growth. Geographically, HCLTech's revenue growth in the United States was reported at 2.9%, whereas European growth remained almost flat at 0.1%. Notably, the Rest of the World segment enjoyed a robust increase of 10.8% year over year.

Future Investments and AI Data Centers

In a forward-looking move, HCLTech has announced a substantial investment plan, amounting to ₹3,500 crore (approximately $370 million), aimed at establishing state-of-the-art AI data centers. These facilities are projected to support up to 50MW of capacity. This strategic investment indicates HCLTech’s commitment to enhancing its capabilities in AI data center design, DevOps, and AI cloud operations.

Additionally, for this quarter, HCLTech declared a dividend of ₹12 per share, maintaining favorable guidelines for FY27 revenue growth between 1% and 4%. EBIT margin expectations range between 17.5% and 18.5%. As per the assessments provided by Shiv Walia, the Chief Financial Officer, the company has delivered steady growth, with significant increases in EBIT and net income of 18.0% and 20.3% respectively, excluding restructuring costs.

Major Contract Wins and Recognition in Sustainability

HCLTech has secured several notable Advanced AI contracts in recent months. One major global technology company enlarged its collaboration with HCLTech for an AI Factory program, which now includes an additional $180 million scope for AI data center development. Other significant wins include a U.S.-based semiconductor company selecting HCLTech for its AI Engineering solution to create advanced AI-enabled vehicle chips, and a renowned European manufacturer engaging HCLTech for navigation technology for autonomous robots.

The company also celebrated recognition as the top-ranked Indian firm in the Professional Services category within the TIME World's Most Sustainable Companies list for two consecutive years. Furthermore, HCLTech achieved a strong position in the ESG risk ratings by Sustainalytics, ranking 6th out of 209 in the IT consulting sphere. Achieving MSCI AA rating for two years highlights its dedication to ethical practices and human resource engagement.

Conclusion

With a remarkable balance of revenue growth and pivotal investments, HCLTech sets the pace for future innovation in technology. By streamlining services in AI, business solutions, and consulting, the company reaffirms its role as a key player in transforming industries and gearing up for a technology-centric future. The integrity of its strategies, paired with the growing demand for advanced technological solutions, undoubtedly places HCLTech at the forefront of the industry, ready to navigate upcoming challenges and seize new opportunities.