HCL Technologies (HCLTECH) Q2 25/26 earnings summary

Executive summary

• Achieved revenue of ₹31,942 crore ($3,644M), up 2.4% QoQ and 4.6% YoY in constant currency, driven by strong services and advanced AI offerings.

• Bookings reached a record $2.6 billion, up 41.8% QoQ and 15.8% YoY, with no mega-deal reliance and significant AI-led contributions.

• Advanced AI revenue exceeded $100 million, now 3% of total revenue, with the AI Force platform deployed across 47 accounts.

• Recognized for digital sustainability, industry awards, and employer excellence by TIME Magazine and Forbes.

• Board approved unaudited results and declared an interim dividend of ₹12 per share, with payment scheduled for October 28, 2025.

Financial highlights

• Total revenue for Q2 FY26 was ₹31,942 crore ($3.644 billion), up from ₹28,862 crore in Q2 FY25; net profit was ₹4,236 crore, nearly flat YoY.

• EBIT was ₹5,550 crore ($637M), margin at 17.4%-17.5%; net income margin at 13.3%.

• Operating cash flow for the last 12 months was $2.62 billion; free cash flow was $2.48 billion, with free cash flow/net income at 125%.

• Diluted EPS for the last 12 months was ₹62.57; basic EPS for Q2 FY26 was ₹15.63.

• Dividend of ₹12/share declared, marking the 91st consecutive quarter of payout.

Outlook and guidance

• FY26 revenue growth expected at 3%-5% YoY in constant currency; services revenue growth at 4%-5%.

• EBIT margin guidance maintained at 17%-18% for the year, with wage revision impacts already factored in.

• Interim dividend of ₹12 per share declared for FY26, with record date on October 17, 2025.