Hexaware Technologies (HEXT) Q4 25/26 earnings summary

Executive summary

• Q4CY25 revenue was $389 million, down 1.5% sequentially but up 4.5% YoY, with full-year revenue at $1,537.4 million, up 7.6% YoY.

• EBITDA margin for CY25 was 17.1%, up 122 bps YoY, with net profit at $157.0 million, up 12.1% YoY.

• Major deal wins, robust pipeline surpassing $4 billion, and new AI-enabled services and platforms launched, including a global AI-first multilingual helpdesk.

• Recognized among the Top 25 IT Services Brands globally, with multiple awards for innovation, ESG, and workplace excellence.

• Added a Chief Private Markets Officer, expanded the client base, and closed two strategic acquisitions.

Financial highlights

• Q4CY25 EBITDA margin was 17.0% (15.4% normalized for one-time items); full-year margin improved to 17.1%.

• Basic EPS for CY25 was INR 22.51, up 16.2% YoY; Q4CY25 EPS was INR 4.79.

• Cash and cash equivalents at year-end stood at $237 million, with a debt-free balance sheet.

• One-time items included a $25M earn-out reversal, $15M impairment charge, $4M credit loss provision, $3.5M accelerated amortization, and $12.5M French labor code impact.

• Dividend per share for CY25 was INR 11.5.

Outlook and guidance

• CY26 revenue growth is expected to exceed CY25’s 7.6%, with long-term growth in the low to mid-teens and potential acceleration.

• EBIT margin guidance for CY26 is 13%-14%, lower than CY25 due to deal ramp-ups and rebadging, but expected to recover in H2.

• Q1 CY26 will be seasonally weak due to calendar and client-specific headwinds, with growth expected to accelerate each subsequent quarter.

• Banking, Healthcare & Insurance to lead CY26 growth; Manufacturing & Consumer, High Tech & Professional Services to grow but trail company average.

• Focus remains on launching new AI-enabled services monthly and rapid client adoption.