HCLTech Experiences Notable Growth in Q3 FY26
HCLTech, a prominent global technology company, has shown exceptional performance during the recent quarter. The company has recorded a remarkable increase in revenue, making its mark in the ever-evolving technology landscape.
Financial Performance Highlights
For the quarter ending in December 2025, HCLTech reported a USD revenue of $3.8 billion, which reflects a 4.2% increase in constant currency (CC) on a quarter-over-quarter basis, along with a year-over-year growth of 4.8%. This stellar performance highlights the company's effective strategies and operational efficiencies.
Strong Earnings and Operating Margins
Chief Executive Officer, C Vijayakumar, attributed the growth to a robust recovery of the operating margin, which reached 18.6%. The increased revenue momentum allowed HCLTech to surpass an impressive milestone of $15 billion in annualized revenue.
Strategic Bookings and Revenue Growth Projections
During the quarter, new bookings soared to $3 billion, showcasing HCLTech’s ability to cater to rising demands in sectors influenced by artificial intelligence. Additionally, the company has updated its revenue growth guidance to range between 4.0% and 4.5% for the year.
In-Depth Analysis of Revenue Segments
Examining the revenue breakdown, services revenue in constant currency grew by 1.8% on a quarterly basis and 5% year-over-year. Meanwhile, HCL Software witnessed a dramatic growth of 28.1% quarter-over-quarter, primarily driven by seasonal demand and advancements in its data intelligence portfolio.
AI Revenue Contribution
The company reported $146 million in advanced AI revenue for the quarter, marking a significant 19.9% increase compared to the previous quarter. Meanwhile, Engineering and R&D Services revenue grew by 3.1%, showcasing HCLTech's capability in innovation and technology advancement.
Sector and Geographical Performance
In terms of industry verticals, Technology and Services topped the chart with a remarkable 14.4% growth year-over-year. Other sectors like Financial Services also exhibited solid growth of 8.1%. Geographically, India excelled with a significant growth rate of 15.8% year-over-year, whereas Europe and the U.S. grew by 4.6% and 1.5%, respectively.
Operational Efficiency and Financial Discipline
The company has successfully focused on improving cash conversion, leading to a healthy free cash flow relative to net income standing strong at 120%. By the end of the quarter, HCLTech achieved its highest cash balance to date.
Commitment to Shareholders and Workforce
Demonstrating its commitment to shareholders, HCLTech declared a dividend of ?12 per share, marking its 92nd consecutive quarterly payout. Additionally, the firm has added a significant number of fresh talent to its workforce, reflecting its expansion strategies.
Key Partnerships and Innovations
HCLTech has recently secured several strategic engagements, including partnerships with leading companies across various sectors. These partnerships focus on deploying AI solutions and modernizing technology landscapes, further enhancing HCLTech's profile as an industry leader.
Recognition and Accolades
The company continues to garner recognition in the technology sector, having recently received a Gold certification from EcoVadis, placing it among the top 4% of rated IT companies. HCLTech was named the fastest-growing tech services brand among India's top valuable brands.
About HCLTech
HCLTech is a global technology company with a dedicated workforce of over 226,300 employees spanning 60 countries. The company offers a broad portfolio of technology services and products, focusing on AI, digital transformation, engineering, and cloud solutions. With consolidated revenues totaling $14.5 billion, HCLTech is committed to driving progress for its clients through innovative technology solutions, spanning multiple industries.
Frequently Asked Questions
What was HCLTech's revenue for Q3 FY26?
HCLTech reported a revenue of $3.8 billion for the quarter ending December 2025.
How much did HCLTech's new bookings total in Q3 FY26?
New bookings for HCLTech in Q3 FY26 reached an impressive $3 billion.
What is the EBIT margin for HCLTech in Q3 FY26?
The EBIT margin stood at 18.6%, excluding the impact of India's New Labor Codes.
How many freshers did HCLTech hire in this quarter?
HCLTech added 2,852 freshers during the quarter, bringing the year-to-date total to 10,032.
What sectors did HCLTech experience growth in?
HCLTech saw significant growth in Technology, Financial Services, and Public Services during the quarter.
