HCLTech Reports 3.9% Revenue Growth Driven by Advanced AI Demand in FY26
HCLTech, a prominent global technology firm, recently unveiled its financial results for the fourth quarter and the fiscal year ending March 31, 2026. The company reported a notable revenue increase of 3.9%, driven primarily by a surge in demand for advanced artificial intelligence services. In dollar terms, the revenue for FY26 is at $14.7 billion, marking a 6% improvement over the previous year.
The rise in revenue can be attributed particularly to strong performance in its IT and enterprise services, which grew by 3.7% year-on-year in constant currency. Even more spectacular was the engineering services segment, which saw a remarkable 9.8% increase in constant currency, highlighting the company's versatility and robust market presence. The total contract value for new orders secured during the fiscal year reached an impressive $9.3 billion, emphasizing clients' trust and growing reliance on HCLTech's offerings.
C Vijayakumar, the company's CEO, expressed optimism regarding these results, noting that the company's new AI-driven service offerings are gaining traction in the market. He mentioned that the annualized revenue from advanced AI in the fourth quarter surpassed $620 million. The forward-looking strategy for FY27 aims at leveraging AI opportunities for sustained value creation over the coming decades.
In terms of industry contributions to growth, technology and services were the leading sectors, with revenues growing by 15% in constant currency. Financial services and telecommunications, media, and entertainment sectors followed, increasing by 7.5% and 5.2%, respectively. Regionally, India showed strong growth with a 5.7% increase, while Europe and the USA contributed significantly with growth rates of 4.5% and 2.3%, respectively. Notably, the rest of the world outperformed all regions with a staggering 17.8% growth.
For FY27, HCLTech anticipates a revenue growth forecast ranging from 1.0% to 4.0% in constant currency, with service revenue growth projected between 1.5% and 4.5%. The expected EBIT margin for the upcoming fiscal year is estimated to be between 17.5% and 18.5%.
In addition to the strong financial performance, HCLTech announced a dividend of ₹24 per equity share for Q4, resulting in a total dividend of ₹60 per share for FY26. Shiv Walia, the Chief Financial Officer, reiterated that HCLTech achieved substantial growth with a revenue of ₹130.144 billion, an increase of 11.2%, together with an EBIT of ₹22.397 billion, reflecting a stable 17.2% margin.
During the last quarter, HCLTech hired 1,712 fresh graduates, amounting to a total of 11,744 new industry entrants for the year. The company's voluntary attrition rate was recorded at 12.5%, slightly down from 13.0% in the previous year's fourth quarter, indicating improved employee retention in a competitive market.
HCLTech also secured significant new contracts, spearheading advanced AI initiatives like the ‘AI Factory’ program worth over $100 million with a leading global tech firm. This program aims to accelerate the setup and operation of next-gen AI data centers, showcasing HCLTech's commitment to advancing AI infrastructure. Additionally, a global semiconductor firm selected HCLTech for its 'AI Engineering' services to support the design of next-gen platforms, and a prominent aerospace corporation engaged the company to create an AI-powered digital simulation environment.
Furthermore, a luxury fashion brand based in Europe picked HCLTech to expedite its AI-enabled transformation across various domains, while a US-based medical technology firm tasked the company with establishing a state-of-the-art cybersecurity competency center. HCLTech also received an extension of partnership from a European public sector body aiming to enhance data governance.
Notably, HCLTech has been recognized for its ethical practices, marking its third consecutive year as one of the ‘World's Most Ethical Companies’ according to Ethisphere. Additionally, the company was featured in Fortunes' ‘World's Most Admired Companies 2026’ list, underscoring its reputation and credibility in the technology industry. To discover how HCLTech can accelerate progress for its clients, visit their official website.
The rise in revenue can be attributed particularly to strong performance in its IT and enterprise services, which grew by 3.7% year-on-year in constant currency. Even more spectacular was the engineering services segment, which saw a remarkable 9.8% increase in constant currency, highlighting the company's versatility and robust market presence. The total contract value for new orders secured during the fiscal year reached an impressive $9.3 billion, emphasizing clients' trust and growing reliance on HCLTech's offerings.
C Vijayakumar, the company's CEO, expressed optimism regarding these results, noting that the company's new AI-driven service offerings are gaining traction in the market. He mentioned that the annualized revenue from advanced AI in the fourth quarter surpassed $620 million. The forward-looking strategy for FY27 aims at leveraging AI opportunities for sustained value creation over the coming decades.
In terms of industry contributions to growth, technology and services were the leading sectors, with revenues growing by 15% in constant currency. Financial services and telecommunications, media, and entertainment sectors followed, increasing by 7.5% and 5.2%, respectively. Regionally, India showed strong growth with a 5.7% increase, while Europe and the USA contributed significantly with growth rates of 4.5% and 2.3%, respectively. Notably, the rest of the world outperformed all regions with a staggering 17.8% growth.
For FY27, HCLTech anticipates a revenue growth forecast ranging from 1.0% to 4.0% in constant currency, with service revenue growth projected between 1.5% and 4.5%. The expected EBIT margin for the upcoming fiscal year is estimated to be between 17.5% and 18.5%.
In addition to the strong financial performance, HCLTech announced a dividend of ₹24 per equity share for Q4, resulting in a total dividend of ₹60 per share for FY26. Shiv Walia, the Chief Financial Officer, reiterated that HCLTech achieved substantial growth with a revenue of ₹130.144 billion, an increase of 11.2%, together with an EBIT of ₹22.397 billion, reflecting a stable 17.2% margin.
During the last quarter, HCLTech hired 1,712 fresh graduates, amounting to a total of 11,744 new industry entrants for the year. The company's voluntary attrition rate was recorded at 12.5%, slightly down from 13.0% in the previous year's fourth quarter, indicating improved employee retention in a competitive market.
HCLTech also secured significant new contracts, spearheading advanced AI initiatives like the ‘AI Factory’ program worth over $100 million with a leading global tech firm. This program aims to accelerate the setup and operation of next-gen AI data centers, showcasing HCLTech's commitment to advancing AI infrastructure. Additionally, a global semiconductor firm selected HCLTech for its 'AI Engineering' services to support the design of next-gen platforms, and a prominent aerospace corporation engaged the company to create an AI-powered digital simulation environment.
Furthermore, a luxury fashion brand based in Europe picked HCLTech to expedite its AI-enabled transformation across various domains, while a US-based medical technology firm tasked the company with establishing a state-of-the-art cybersecurity competency center. HCLTech also received an extension of partnership from a European public sector body aiming to enhance data governance.
Notably, HCLTech has been recognized for its ethical practices, marking its third consecutive year as one of the ‘World's Most Ethical Companies’ according to Ethisphere. Additionally, the company was featured in Fortunes' ‘World's Most Admired Companies 2026’ list, underscoring its reputation and credibility in the technology industry. To discover how HCLTech can accelerate progress for its clients, visit their official website.
Topics Business Technology）
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