HCLTech Reports Solid Performance with 3.7% Revenue Growth

HCLTech Achieves Impressive Revenue Growth

HCLTech, a prominent global technology company, has reported a notable revenue growth of 3.7% year over year for the first quarter of the fiscal year. This positive trend highlights the company’s resilience and capability to adapt to the evolving technology landscape.

Outstanding Financial Performance in Q1 FY26

In monetary terms, HCLTech's revenue for this quarter stood at $3.55 billion, showcasing an increase of 5.4% compared to the previous year. The earnings before interest and taxes (EBIT) margin recorded was 16.3%, reflecting strategic financial management within the company.

New Deal Wins and Pipeline Growth

HCLTech secured substantial new deals during the quarter, with a total contract value (TCV) reaching an impressive $1.8 billion. This influx of new deals underscores the company’s strong position in the market and its ability to attract lucrative opportunities.

Digital Services and Engineering Growth

The digital services segment of HCLTech experienced an impressive growth of 15.2% year over year. This segment now accounts for 41.6% of the total services revenue, epitomizing a strategic shift towards digital transformation and innovation. Engineering and R&D services also showed robust growth at 11.8% year over year.

Dividend Announcement and Revenue Forecast

In a move to reward shareholders, HCLTech announced a dividend of ?12 per share during this quarter. This marks the 90th consecutive quarter of dividend payments, demonstrating HCLTech’s ongoing commitment to delivering value to its investors. The company has also adjusted its revenue growth guidance for FY26 to 3.0%-5.0% and its EBIT margin guidance to 17.0%–18.0%.

Leadership Insights from HCLTech’s CEO

“We had healthy revenue growth of 3.7% YoY, supported by good performance in our services business with a 4.5% YoY growth in constant currency. Our operating margin was at 16.3%, impacted by lower utilization and additional investments in generative AI and go-to-market strategies,” stated C. Vijayakumar, CEO and Managing Director of HCLTech. He further emphasized the positive resonance of their AI propositions among clients and a steady increase in their deal pipeline.

Sector Growth and Geographical Expansion

HCLTech saw considerable growth across various industry sectors, leading with technology and services at 13.7% year over year, closely followed by telecommunications and media with a growth of 13.0%. Retail and consumer packaged goods achieved 8.2% growth, while financial services increased by 6.8%. Geographically, the Rest of the World depicted the fastest growth rate at 15% year over year while Europe recorded a 9.6% growth rate.

Employee Growth and Industry Recognition

During this quarter, HCLTech enhanced its workforce by adding 1,984 freshers, maintaining an impressive attrition rate of 12.8%. This highlights the company’s strong capability to nurture and retain talent. Moreover, HCLTech received several prestigious recognitions, further establishing its credibility in the industry.

Recent Recognition for Excellence

In Q1 FY26, HCLTech was distinguished as one of Asia's Most Honored in Extel's 2025 Executive Team rankings, marking 17 Top 3 rankings in the technology IT services and software sector. Additionally, C. Vijayakumar was ranked highly among CEOs, showcasing exceptional leadership.

Looking Ahead: Future Prospects

The firm’s commitment to innovation and customer satisfaction sets the stage for promising future growth. As a trusted partner for global enterprises, HCLTech is focused on enhancing its capabilities and expanding service offerings to meet the dynamic needs of clients across various sectors.

Frequently Asked Questions

What is HCLTech's revenue growth for Q1 FY26?

HCLTech reported a revenue growth of 3.7% year over year for Q1 FY26.

How much did HCLTech earn in revenue this quarter?

The company earned $3.55 billion in revenue during the first quarter of FY26.

What was HCLTech's EBIT margin in this quarter?

The EBIT margin for the quarter stood at 16.3%.

What is HCLTech's dividend announcement for this quarter?

HCLTech declared a dividend of ?12 per share for the quarter.

How many new employees did HCLTech add in Q1 FY26?

HCLTech added 1,984 freshers to its workforce during the quarter.

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