HCLTech reported revenue of $3,644 million for the July–September 2025 quarter, marking a 2.8 percent sequential and 5.8 percent year-over-year (YoY) increase, driven by robust performance in digital and AI-led services.
The United States contributed 56.2 percent of total revenue, followed by Europe at 28.3 percent, the rest of the world at 12.4 percent, and India at 3.2 percent.
Key industry verticals of HCLTech included Financial Services (21.7 percent to revenue), Manufacturing (18.3 percent), Lifesciences & Healthcare (14.7 percent), Technology and Services (14 percent), Telecommunications, Media, Publishing & Entertainment (12.7 percent), Retail & CPG (9.6 percent), and Public Services (8.9 percent).
The company’s services revenue grew 2.5 percent quarter-on-quarter (QoQ) and 5.5 percent YoY, with digital revenue up 15 percent YoY, now contributing 42 percent of total services.
Advanced AI revenue crossed the $100 million mark this quarter, reflecting strong enterprise demand for AI-powered transformation.
HCLSoftware revenue declined 3.7 percent YoY; however, its Subscription & Support and Professional Services segments grew 8 percent YoY, with Annual Recurring Revenue (ARR) reaching $1.06 billion, up 0.6 percent YoY.
Bookings remained a major highlight, with total contract value (TCV) of new deal wins at $2,569 million — up 41.8 percent QoQ and 15.8 percent YoY — marking a record quarter without reliance on any mega deals.
HCLTech added 3,489 employees during the quarter, including 5,196 freshers, taking the total headcount to 226,640. Attrition dropped to 12.6 percent, down from 12.9 percent in the same quarter last year.
For FY26, HCLTech expects overall revenue growth between 3 percent and 5 percent YoY in constant currency and services revenue growth between 4 percent and 5 percent, with EBIT margins projected between 17 percent and 18 percent.
Chairperson Roshni Nadar Malhotra stated that HCLTech continues to perform well amid a challenging business climate, emphasizing ongoing investments in emerging technologies and workforce upskilling to enable innovation for clients.
CEO and Managing Director C. Vijayakumar highlighted that the quarter was “a standout on every front,” citing strong execution, expanding demand for AI-driven solutions, and operating margin recovery to 17.5 percent. He added that revenue per employee rose 1.8 percent YoY, underscoring the company’s alignment with its AI growth strategy.
Shubham Rathore, Principal Analyst at Gartner, said: “HCLTech reported a strong set of numbers for Q2, with revenue rising 10.7 percent YoY and 5.2 percent QoQ, despite persistent macroeconomic headwinds. The company’s success in expanding its digital and AI portfolio was evident in record deal wins of $2.57 billion, achieved without reliance on mega-deals.”
“This highlights HCLTech’s growing ability to secure major, multi-year engagements and build deeper client partnerships. Operational improvements, including margin recovery and lower attrition, reinforce its commitment to execution and talent retention. Management’s guidance for steady growth and margins reflects confidence in navigating uncertainty through innovation and strategic investments. HCLTech’s results affirm its position as a forward-looking player in the global IT services sector,” Shubham Rathore said.
HCLTech’s Q2 FY26 performance reinforces its position as one of India’s leading IT service providers, showcasing strong AI adoption, digital transformation success, and consistent growth across global markets.
Rajani Baburajan
