Business · Companies · 9 hrs ago
HCLTech beats revenue estimates as quarterly growth slows to a three-year low
India-based HCLTech reported $3.72 billion in revenue for the quarter ending in September, slightly above analysts’ expectations.
Revenue rose 2.2% from a year earlier, the company’s slowest September-quarter growth in three years.
The company said demand for traditional technology services remains challenging, while clients are prioritising AI, data and efficiency projects.
HCLTech’s advanced AI revenue increased 28% from the previous quarter to $219 million.
It also reported $3.3 billion in new orders during the quarter, a record first-half total when combined with earlier orders.
The company has raised the lower end of its full-year revenue growth forecast but kept the upper end at 4%, reflecting continued caution.
It expects operating margins of 17.5% to 18.5%, and says AI-related price and revenue pressures are still in their early stages.
HCLTech reported $3.72 billion in revenue for the September quarter, beating analyst estimates of $3.68 billion.
Revenue rose 2% from the June quarter and 2.2% from a year earlier, the slowest September-quarter growth in three years.
The company’s advanced AI revenue increased 28% sequentially to $219 million.
HCLTech raised the lower end of its FY27 revenue growth guidance but kept the upper end at 4%.
Management said demand remained fluid and clients were prioritising AI, data and operating model transformation.
- Who
- HCLTech, India's third-largest IT services company.
- What
- It reported $3.72 billion in September-quarter revenue, above analyst estimates, while growth slowed to a three-year low.
- When
- The results were reported on 12 October 2026 for the September quarter.
- Where
- HCLTech is based in Noida, India.
- Why
- AI revenue rose, while demand for traditional technology offerings remained constrained.
HCLTech
Accenture
AI revenue deflation
HCLTech
HCLTech CEO C Vijayakumar said the company was in the early phases of AI-led revenue deflation.
Accenture
Accenture said deflation was now predictable.
HCLTech acquired a 10% stake in Sarvam AI for about $150 million.
HCLTech said it would invest $365 million to build and operate data centres of up to 50 MW.
HCLTech reported $3.72 billion in revenue and $3.3 billion in new orders.
Mint published its report on HCLTech's quarterly results.
- September-quarter revenue
- $3.72 billion
- Analyst revenue estimate
- $3.68 billion
- Advanced AI revenue
- $219 million, up 28% sequentially
- Quarterly new orders
- $3.3 billion
- FY27 revenue growth guidance
- 2.5-4% in constant currency terms
What people are saying
We saw healthy demand towards the end of the quarter. However, the environment remains fluid as the demand is influenced by various factors.
There is no one way to define how much deflation is already there and how much is yet to come. I would say we are in the early phases of deflation. It's not that deflation has really played out during the early phases of this.
Sources
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