HCLTech Reports Strong Q3 Performance with Annual Revenue Surpassing $15 Billion
In a remarkable display of resilience and growth, HCLTech has announced its financial results for the third quarter ending December 31, 2025. The company, recognized as one of the leading global technology firms, has seen its revenue soar by 4.2% quarter-over-quarter in constant currency, achieving an impressive annualized figure that exceeded $15 billion. C Vijayakumar, CEO of HCLTech, highlighted that this strong performance is indicative of the company's strategic positioning in response to evolving demand across industries. The order book remains exceptionally high, currently standing at $3 billion, reinforcing the company’s capabilities in AI across various service lines.
HCLTech reported a revenue of $3.8 billion for the quarter, marking a 4.8% increase year-over-year. The company's operational margin has also seen a notable recovery, increasing to 18.6%. This performance underscores HCLTech's commitment to meeting clients' needs, particularly for AI solutions. HCLTech's service revenues in constant currency rose by 1.8% sequentially and 5% year-over-year, reflecting a robust market demand.
Among significant highlights from the report, HCL Software's revenue experienced a significant leap of 28.1% from the previous quarter, driven largely by seasonal factors and enhanced data intelligence activities. The annual recurring revenue from HCL Software now stands at approximately $1.07 billion. Meanwhile, the advanced AI revenue for the quarter, a new reporting category, rose by 19.9%, reaching $146 million.
Looking at sector performances, HCLTech noted a 14.4% growth in its industry verticals due to strong demand for technology services, while the financial services sector grew by 8.1%. The public utilities segment also recorded an 8% increase, which includes energy, transportation, and logistics. Geographically, India emerged with a remarkable 15.8% growth, while Europe and the United States experienced increases of 4.6% and 1.5% respectively. Other regions exhibited even more substantial growth rates, with an overall increase of 22.1% in constant currency.
In terms of operational efficiency, HCLTech reported a 120% healthy cash conversion ratio over the last twelve months, demonstrating sound financial health. The company ended the quarter with the highest cash balance recorded to date, totaling ₹34,306 crores. Additionally, the board has announced a dividend of ₹12 per share, marking the 92nd consecutive quarter of dividend disbursement.
Recruitment saw significant activity with the addition of 2,852 new employees during the quarter, bringing the total to 10,032 new recruits over the past nine months. The attrition rate also improved to a long-term low of 12.4%, one of the best in the industry.
HCLTech has secured significant new contracts during this period, including a five-year strategic partnership with a major global clothing retailer valued at $473 million to modernize their AI platforms. Other notable contracts include partnerships with a major American insurance company, a leading European agri-food group, and a global technology firm to enhance their AI capabilities.
With its commitment to innovation, HCLTech has been recognized for its sustainable business practices, achieving EcoVadis Gold certification and ranking among the top 4% of IT companies globally. Furthermore, it has been identified among the fastest-growing technology service brands in India and has been listed on Forbes World's Best Employers for six consecutive years.
HCLTech, which employs over 226,300 professionals across 60 countries, continues to lead with cutting-edge solutions centered on AI, digital transformation, engineering, cloud services, and software. The consolidated revenue for the twelve months ending December 2025 reached $14.5 billion, showcasing HCLTech's steady growth trajectory and its capacity to drive advancements across various sectors. To learn more about their offerings, visit hcltech.com.
HCLTech reported a revenue of $3.8 billion for the quarter, marking a 4.8% increase year-over-year. The company's operational margin has also seen a notable recovery, increasing to 18.6%. This performance underscores HCLTech's commitment to meeting clients' needs, particularly for AI solutions. HCLTech's service revenues in constant currency rose by 1.8% sequentially and 5% year-over-year, reflecting a robust market demand.
Among significant highlights from the report, HCL Software's revenue experienced a significant leap of 28.1% from the previous quarter, driven largely by seasonal factors and enhanced data intelligence activities. The annual recurring revenue from HCL Software now stands at approximately $1.07 billion. Meanwhile, the advanced AI revenue for the quarter, a new reporting category, rose by 19.9%, reaching $146 million.
Looking at sector performances, HCLTech noted a 14.4% growth in its industry verticals due to strong demand for technology services, while the financial services sector grew by 8.1%. The public utilities segment also recorded an 8% increase, which includes energy, transportation, and logistics. Geographically, India emerged with a remarkable 15.8% growth, while Europe and the United States experienced increases of 4.6% and 1.5% respectively. Other regions exhibited even more substantial growth rates, with an overall increase of 22.1% in constant currency.
In terms of operational efficiency, HCLTech reported a 120% healthy cash conversion ratio over the last twelve months, demonstrating sound financial health. The company ended the quarter with the highest cash balance recorded to date, totaling ₹34,306 crores. Additionally, the board has announced a dividend of ₹12 per share, marking the 92nd consecutive quarter of dividend disbursement.
Recruitment saw significant activity with the addition of 2,852 new employees during the quarter, bringing the total to 10,032 new recruits over the past nine months. The attrition rate also improved to a long-term low of 12.4%, one of the best in the industry.
HCLTech has secured significant new contracts during this period, including a five-year strategic partnership with a major global clothing retailer valued at $473 million to modernize their AI platforms. Other notable contracts include partnerships with a major American insurance company, a leading European agri-food group, and a global technology firm to enhance their AI capabilities.
With its commitment to innovation, HCLTech has been recognized for its sustainable business practices, achieving EcoVadis Gold certification and ranking among the top 4% of IT companies globally. Furthermore, it has been identified among the fastest-growing technology service brands in India and has been listed on Forbes World's Best Employers for six consecutive years.
HCLTech, which employs over 226,300 professionals across 60 countries, continues to lead with cutting-edge solutions centered on AI, digital transformation, engineering, cloud services, and software. The consolidated revenue for the twelve months ending December 2025 reached $14.5 billion, showcasing HCLTech's steady growth trajectory and its capacity to drive advancements across various sectors. To learn more about their offerings, visit hcltech.com.
Topics Business Technology）
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