HCL Technologies (HCLTECH) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 delivered strong performance with USD revenue of $3.79 billion (₹33,872 crore), up 4.8% YoY and 4.2% QoQ in constant currency, driven by AI-led offerings, robust bookings, and margin improvement.

• Annualized revenue surpassed $15 billion, reflecting scale and growth durability.

• Bookings reached $3.01 billion, up 17% QoQ and 43% YoY, with significant wins in AI, digital, and transformation deals.

• AI is embedded across all major engagements, with notable partnerships and recognitions, including collaborations with NVIDIA, SAP, AWS, and OpenAI.

• Board approved unaudited results for Q3 FY26 and declared an interim dividend of ₹12 per share.

Financial highlights

• Q3 revenue: $3.79 billion (₹33,872 crore), up 4.8% YoY and 4.2% QoQ in constant currency; digital revenue grew 17.7% YoY, now 43.2% of services.

• EBIT: $704 million (₹6,285 crore, 18.6% margin), net income: $537 million (₹4,795 crore, 14.2% margin), both excluding one-time labor costs.

• Free cash flow/net income (LTM) at 120%; gross cash: $3.82 billion (₹34,306 crore); net cash: $3.55 billion (₹31,939 crore).

• Interim dividend of ₹12/share; payout continued for 92 consecutive quarters.

• Net profit for Q3 FY26 was ₹4,082 crore, impacted by a one-time charge from New Labour Codes.

Outlook and guidance

• Raised full-year services revenue growth guidance to 4.75%-5.25% and company-level to 4%-4.5% in constant currency.

• EBIT margin guidance maintained at 17%-18%, excluding one-time labor code impact.

• Guidance excludes contributions from recent acquisitions (Telco Solutions, Jaspersoft, Wobby).