HCLTech Reports 4.2% Quarterly Revenue Growth in Q3 FY26, Sees Strong Demand

HCLTech Q3 FY26 Revenue Reports Strong Gains

In the recently concluded third quarter of fiscal year 2026, HCLTech, a global technology leader, has reported a remarkable revenue increase, boasting a 4.2% rise from the previous quarter when adjusted for currency fluctuations. This surge pushed the company's annualized revenue to an impressive $15 billion, highlighting its robust business performance in a competitive market.

Financial Overview

For the quarter ending December 31, 2025, HCLTech achieved a revenue total of $3.8 billion. The consistent growth patterns reflect a 4.8% increase compared to the previous year. CEO C Vijayakumar noted, “We experienced an outstanding quarter in every aspect, achieving a significant recovery in operational margins, reaching 18.6%. This quarter's strong revenue dynamics have allowed us to cross the $15 billion mark in annual revenue.”

Importantly, the company reported exceptionally high order bookings, totaling $3 billion, showing a healthy demand for its services across various sectors.

Service Revenue and AI Growth

The revenue derived from services showed a steady increase of 1.8% from the previous quarter and a 5% jump year-over-year. Moreover, HCL Software witnessed a surge in revenue fueled by seasonal impacts and its Data-Intelligence portfolio, recording a 28.1% increase from the prior quarter and a 3.1% annual growth. The firm has continued to innovate, reporting a remarkable 19.9% growth in revenue from advanced AI services, now totaling $146 million for the quarter.

HCLTech also enhanced its revenue forecasts, now predicting growth rates between 4.0% and 4.5% year-over-year, adjusting its service revenue growth estimates to between 4.75% and 5.25%. These optimistic projections highlight the company’s commitment to navigating the evolving landscape of artificial intelligence requirements across industries.

Sector and Geographic Performance

Performance across various sectors also remained strong, particularly in technology and services with a 14.4% year-over-year growth; financial services following closely with 8.1%. Notably, public services sectors—including energy, transportation, and government services—recorded significant growth. Geographically, India demonstrated a robust growth rate of 15.8% year-over-year, while Europe and the USA experienced modest increases of 4.6% and 1.5%, respectively. The broader international market outside of these regions achieved a noteworthy growth rate of 22.1%.

Operational Performance and Employee Growth

The company’s EBIT margins for the third quarter stood at 18.6%, excluding the one-off impacts of new labor laws in India. HCLTech’s strategic efforts to enhance cash conversion have maintained a healthy free cash flow ratio of 120%, allied with an impressive cash balance of ₹34,306 crore at the end of the quarter. HCLTech also reported significant hiring, onboarding 2,852 new employees during the quarter, bringing the total new hires for the past nine months to 10,032. The employee turnover rate has dropped to 12.4%, positioning HCLTech as one of the more stable employers in the tech sector.

Key Contracts and Strategic Partnerships

HCLTech has secured pivotal contracts during this quarter. One noteworthy agreement includes a five-year mega contract with a leading global apparel retailer, valued at $473 million, to act as a long-term AI-driven technology partner. The firm will leverage its AI Force 2.0 platform to modernize the client's applications and data landscape.

Moreover, a prominent US insurance firm has selected HCLTech as a strategic partner supported by AI Force, aiming to transform IT service delivery and improve operational efficiency through enhanced automation. In Europe, a global food conglomerate has engaged HCLTech to design and implement a Greenfield IT infrastructure, advancing towards a modernized, AI-based digital environment.

Additionally, HCLTech was awarded a gold certification by EcoVadis, ranking within the top 4% of evaluated IT companies. The company has also been recognized for several achievements, including its rapid growth in tech services and its placement in Forbes' list of the world's best employers for the sixth consecutive year.

In conclusion, HCLTech's robust financial performance and strategic initiatives position it well within the global technology landscape, underscoring its potential for sustained growth and innovation in the domains of AI and engineering services. As HCLTech continues to break new ground, interested parties can learn more about the company and its offerings by visiting hcltech.com.