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HCLTech's Impressive First Quarter Highlights

HCLTech, a leading global technology company, reported exceptional financial performance for the first quarter ending June 30, 2026. The company's revenue reached $3.65 billion, marking a 3% increase year-over-year. When adjusted for constant currency, the growth was reported at 2.6%. CEO C. Vijayakumar attributed this success to a record $2.4 billion in new bookings during the quarter, showcasing the firm's strength in driving digital transformation through advanced AI.

Financial Milestones

In detail, HCLTech's advanced AI division saw revenue grow by a staggering 62.1% year-over-year to $171 million, and 10.6% quarter-over-quarter, indicating a robust demand for AI-driven solutions. This growth was bolstered by a consistent increase in IT and business services, which experienced a 4.2% growth year-over-year in constant currency. Notably, HCLSoftware reported annual recurring revenue of $1.06 billion, reflecting a 2% year-over-year increase in constant currency. Moreover, revenue per employee reached $65,500, up by 3.3% year-over-year.

Industry Vertical Performance

HCLTech's performance across industry verticals revealed impressive growth, particularly in the Utilities sector, which saw a 12% year-over-year increase in constant currency. The Retail and Packaged Consumer Goods sectors followed closely at 10.1% growth, while the Technology and Services sector grew by 7.3% year-over-year. Geographically, the United States accounted for a 2.9% year-over-year increase, while Europe remained flat at 0.1%. In contrast, the Rest of the World experienced a robust 10.8% growth.

A Commitment to AI Infrastructure

In a significant commitment to future growth, HCLTech announced plans to invest up to ₹3,500 crores (approximately $370 million) in the establishment of AI data centers, potentially achieving a capacity of 50 MW. This investment will enhance the firm's existing capabilities in AI data center design, DevOps, and cloud operations, supporting a comprehensive end-to-end solution for clients.

Dividends and Future Outlook

HCLTech declared a dividend of ₹12 per share for the quarter, emphasizing its commitment to shareholder returns. The company maintains its revenue growth forecast for FY 2027 between 1% and 4% year-over-year in constant currency, with service revenue growth expected between 1.5% and 4.5%. The EBIT margin is anticipated to fall between 17.5% and 18.5%.

Key Achievements in Advanced AI Agreements

Several notable agreements in advanced AI were secured during the quarter:

• - A major global tech company expanded its collaboration with HCLTech for an AI Factory program worth over $180 million, aimed at developing an AI data center.
• - A leading U.S.-based semiconductor firm selected HCLTech’s AI engineering solution to develop an advanced AI chip for next-gen vehicles.
• - A European manufacturer partnered with HCLTech to design a navigation system for its next-gen autonomous robot, leveraging HCL's physical AI capabilities.

Other Business Milestones

Additional significant business agreements were established:

• - A major Europe-based automotive manufacturer has hired HCLTech for a large-scale AI-driven Site Reliability Engineering program covering various operational areas.
• - A Fortune 250 semiconductor company has chosen HCLTech for accelerating AI transformation throughout its semiconductor engineering and manufacturing value chain.
• - In one of HCLSoftware’s largest deals, a U.S.-based tech services firm selected Actian Ingres to support public sector logistics operations.

Sustainability and Recognition

Furthermore, HCLTech was recognized for its commitment to sustainability, ranking as India's top professional services firm on the TIME's Most Sustainable Companies list for the second consecutive year. HCLTech also achieved a sixth place among 209 IT consulting companies in ESG risk ratings by Sustainalytics and received MSCI AA (Leader) rating for ethical practices and human capital management.

Conclusion

With a workforce of over 223,000 across 60 countries, HCLTech is well-positioned to leverage its extensive service portfolio, including AI, digital transformation, engineering, cloud, and software solutions for clients in various sectors. The company recorded consolidated revenues of $14.8 billion for the 12 months ending June 2026, indicating a promising growth trajectory. For more information on how HCLTech can drive your business forward, visit hcltech.com.