HCLTech reported revenue of $3,682 million in the fourth quarter of fiscal 2025-26, reflecting a decline of 2.9 percent sequentially while registering a growth of 5.3 percent year-on-year. For the full fiscal year, revenue reached $14,664 million, marking a 6.0 percent increase, driven by steady demand across key service lines despite a challenging macro environment.
In Q4, total contract value of new deal wins stood at $1,936 million, indicating continued deal flow, although execution softness impacted quarterly performance.
HCLTech’s total headcount stood at 227,181, with a net addition of 802 employees during the quarter and 1,712 freshers onboarded. Attrition improved to 12.5 percent over the last twelve months, down from 13.0 percent in the same period last year.
For the full fiscal year, HCLTech reported bookings of $9,323 million in contract value. The company added 3,761 employees on a net basis and hired 11,744 freshers, reinforcing its talent pipeline. Attrition remained stable at 12.5 percent, reflecting improved employee retention.
Looking ahead to fiscal 2027, HCLTech expects overall revenue growth between 1.0 percent and 4.0 percent in constant currency, with services revenue projected to grow between 1.5 percent and 4.5 percent. EBIT margin guidance is set in the range of 17.5 percent to 18.5 percent, indicating a focus on profitability alongside growth.
HCLTech Chairperson Roshni Nadar Malhotra emphasized the company’s strategic shift toward artificial intelligence, highlighting investments in AI-driven propositions to capture long-term growth opportunities.
HCLTech CEO C Vijayakumar noted that the company delivered 3.9 percent constant currency revenue growth and a 17.2 percent operating margin during the year, despite an uncertain demand environment and reduced discretionary spending.
He added that advanced AI offerings are gaining traction, with annualized AI revenues surpassing $620 million in Q4, positioning HCLTech for long-term value creation in the evolving AI landscape.
Shubham Rathore, Principal Analyst, Gartner, said: “HCLTech’s fourth-quarter constant currency revenue growth of 2.4 percent year-over-year highlights a stable trajectory despite broader economic uncertainties. A critical driver for the quarter was the resilient $1.9 billion deal pipeline and the strategic emphasis on AI-led transformation.”
Gartner projects that total spending across both direct and indirect AI services will reach $1.11 trillion by 2029, underscoring the massive opportunity for providers integrating AI to improve workflow efficiencies.
“Even with these structural growth drivers, the company and the IT sector at large must contend with near-term challenges, notably declining software revenues and evolving client budgets. As we look toward FY27, IT service providers that effectively transition from isolated AI pilots to enterprise-wide integrations will be best positioned to drive long-term value and sustained industry leadership,” Shubham Rathore said.
HCLTech’s regional revenue mix
HCLTech’s regional revenue mix in fiscal 2026 shows moderate shifts compared with fiscal 2025, with growth led by Europe and Rest of World, while the U.S. share declined slightly.
For the full year ended March 2026, the United States remained the largest market, contributing 56.3 percent of revenue, down from 58.8 percent in fiscal 2025, indicating a marginal diversification away from its core market. Europe increased its share to 27.8 percent from 26.6 percent, reflecting stronger traction in the region. The Rest of World (RoW) segment also expanded meaningfully, rising to 12.7 percent from 11.3 percent, highlighting faster growth in emerging and non-core markets. India remained relatively stable, contributing 3.2 percent compared with 3.3 percent in the previous fiscal.
In terms of growth, RoW recorded the highest YoY constant currency growth at 17.8 percent, followed by India at 5.7 percent and Europe at 4.5 percent, while the U.S. grew at a slower 2.3 percent.
HCLTech’s revenue mix by vertical
HCLTech’s revenue mix by vertical in fiscal 2026 shows selective growth across technology-led segments, while some traditional verticals saw slower momentum or decline compared with fiscal 2025.
For the year ended March 2026, Financial Services remained the largest vertical, contributing 21.5 percent, up from 20.7 percent in fiscal 2025, supported by 7.5 percent YoY constant currency growth. Manufacturing, the second-largest segment, saw a slight decline in share to 18.6 percent from 19.1 percent, with muted 0.5 percent growth, indicating softer demand.
The Technology and Services vertical emerged as a key growth driver, increasing its contribution to 14.3 percent from 13.2 percent, delivering a strong 15.0 percent YoY growth, the highest among major segments. In contrast, Lifesciences and Healthcare declined to 14.4 percent from 15.5 percent, posting a 1.8 percent contraction, reflecting pressure in the segment.
Telecommunications, Media, Publishing and Entertainment maintained a stable share at 12.6 percent, with 5.2 percent growth, while Retail and CPG remained largely steady at 9.7 percent versus 9.8 percent, growing 3.6 percent. Public Services held its share at 8.9 percent, supported by 4.6 percent growth.
HCLTech reported broad-based growth in client count across all deal sizes in fiscal 2026 compared with fiscal 2025, reflecting continued client mining and expansion of large accounts. The number of $100M+ clients increased marginally to 23 from 22, indicating steady but gradual growth at the top end. The $50M+ segment saw a stronger rise to 60 from 52, while $20M+ clients grew to 149 from 138. Mid-tier expansion remained robust, with $10M+ clients increasing to 277 from 251 and $5M+ clients rising to 429 from 399. The base of $1M+ clients also expanded significantly to 976 from 948.
Overall, fiscal 2026 highlights consistent expansion across both mid-tier and large deal categories, with the most notable gains in the $10M+ to $50M+ segments. This trend underscores HCLTech’s ability to scale existing relationships and improve wallet share, while growth in the $100M+ category remained relatively modest compared to other segments.
RAJANI BABURAJAN
