HCLTech Reports Strong Q3 FY26 Growth with 4.2% Revenue Increase

HCLTech Reports Strong Q3 FY26 Growth

HCLTech, a leading global technology company, achieved impressive financial results for the third quarter ending December 31, 2025. The company's quarterly revenues in constant currency grew by 4.2% compared to the previous quarter, reaching an impressive $3.8 billion USD. The annualized revenue has surpassed $15 billion, marking a key milestone for the organization.

According to C. Vijayakumar, CEO and Managing Director of HCLTech, the company enjoyed another stellar quarter across the board, with a noteworthy recovery in its operating margin jumping to 18.6%. He noted that the strong revenue momentum allowed the firm to exceed $15 billion in annualized revenues, supported by exceptionally high new bookings of approximately $3 billion. This performance puts HCLTech in an advantageous position to meet the increasing demand for AI solutions from clients across various sectors.

The growth in service revenues further indicates a healthy trajectory, with a quarterly increase of 1.8% quarter-on-quarter and a 5% year-on-year rise. Notably, revenues from HCL Software, a core part of HCLTech's offerings, surged remarkably by 28.1% on a quarterly basis and 3.1% year-on-year, driven largely by their data intelligence portfolio. Additionally, the company has recently reported advanced AI revenue of $146 million for the quarter, illustrating a year-over-year increase of 19.9%.

In terms of specific sectors, the Company saw notable growth in Engineering and R&D services, rising by 3.1% quarterly and 5% annually. IT and Business Services, which constitute 72.3% of its total revenues, also saw growth of 1.5% quarter-on-quarter and 3.8% year-on-year. The positive trend indicates HCLTech's flexibility and capacity to pivot in response to market demands.

With regards to future outlooks, HCLTech has upgraded its revenue growth forecast to between 4.0% and 4.5% year-on-year in constant currency, while its forecast for service revenue growth has been set at 4.75% to 5.25% year-on-year. Their EBIT margin forecast is maintained at 17% to 18%, excluding the extraordinary impact of ₹956 crores ($109 million) from the New Labor Codes in India.

Industry verticals are seeing varied growth trajectories as well, with Technology and Services leading with a year-on-year growth rate of 14.4%, followed by Financial Services at 8.1%. Public Utilities, which include segments related to energy and transport, also realized an 8% annual growth. Geographically, India reported a robust year-on-year growth of 15.8%, while Europe and the United States grew by 4.6% and 1.5%, respectively. The 'Rest of the World' category demonstrated the highest growth at 22.1% annually.

Additionally, during this quarter, HCLTech expanded its workforce by bringing in 2,852 new employees, increasing its tally of new hires over the past nine months to 10,032. The attrition rate over the last 12 months also showed signs of moderation at 12.4%, marking one of the lowest rates in the sector.

Furthermore, major strategic partnerships were formed, including a five-year agreement with a leading global retail chain to serve as its AI-focused technology partner. Other notable collaborations include partnerships with a top U.S. insurer and a global food company to enhance their IT functionalities through AI integration.

In the realm of environmental responsibility, HCLTech received an EcoVadis Gold certification, aligning with its commitment to sustainability and corporate social responsibility. The company was also celebrated among the fastest-growing tech services brands in India and ranked on Forbes' list of Best Employers for the sixth consecutive year.

As HCLTech continues to innovate, the intersection of technology and AI remains a primary focus, ensuring they remain at the forefront of the industry moving forward. For more information on HCLTech's services and achievements, visit hcltech.com.