HCLTech Reports Strong Q3 FY26 Growth with $3B in New Bookings

HCLTech has announced robust financial results for the third quarter of fiscal year 2026, ending December 31, 2025. The company achieved revenues of $3.8 billion, marking a 4.2% increase quarter-on-quarter in constant currency (CC). As a result, HCLTech’s annualized revenue has surpassed $15 billion. New bookings were exceptionally high, reaching $3 billion, indicating strong demand across its services.

The company’s CEO and Managing Director, C Vijayakumar, highlighted the performance, stating, “(We had) another standout quarter on all fronts… with a strong recovery of operating margin to 18.6%.” He emphasized HCLTech’s readiness to meet the growing demand for artificial intelligence (AI) solutions across various sectors.

Key Financial Metrics and Guidance

HCLTech has raised its revenue growth guidance to between 4.0% and 4.5% year-over-year in constant currency, while services revenue growth guidance has been adjusted to 4.75% to 5.25% year-over-year. The company’s operating income before interest and taxes (EBIT) margin guidance remains stable at 17% to 18%, excluding a one-time impact of ₹956 crores (approximately $109 million) resulting from India’s New Labor Codes.

Notably, services revenue also saw growth, increasing 1.8% quarter-on-quarter and 5% year-over-year in constant currency. HCL Software revenue experienced significant growth of 28.1% quarter-on-quarter, driven largely by seasonal factors and the company’s data intelligence portfolio. The annual recurring revenue (ARR) for HCL Software now stands at $1.07 billion.

Sector and Geographic Performance

HCLTech’s engineering and research and development services revenue grew 3.1% quarter-on-quarter and 5% year-over-year. IT and business services, which represent 72.3% of total revenue, saw an increase of 1.5% quarter-on-quarter and 3.8% year-over-year.

In terms of industry performance, technology and services led with 14.4% year-over-year growth, followed by financial services at 8.1%. Public services, which encompass energy, utilities, and government sectors, grew 8% year-over-year.

Geographically, HCLTech reported impressive growth in India at 15.8% year-over-year, while Europe and the U.S. grew 4.6% and 1.5%, respectively. The Rest of the World experienced the highest growth rate at 22.1% year-over-year.

The company’s Chief Financial Officer, Shiv Walia, noted that the EBIT margins, excluding the one-time impact, improved to 18.6%, up 111 basis points quarter-on-quarter. Walia also reported a healthy cash conversion rate, with free cash flow to net income remaining at 120% on a last twelve months basis, concluding the quarter with a record cash balance of ₹34,306 crores.

HCLTech declared a dividend of ₹12 per share for the quarter, marking the 92nd consecutive quarter of dividend payouts. The company has also added 2,852 freshers during the quarter, contributing to a total of 10,032 new hires in the past nine months. The attrition rate has moderated to 12.4%, one of the lowest in the industry.

Key deals secured during the quarter include a significant five-year strategic engagement with a leading global apparel retailer for a total contract value of $473 million. HCLTech will serve as the long-term AI-led technology partner for this client, focusing on modernizing their applications and data landscape.

Additionally, HCLTech has been selected as a strategic technology partner by a prominent U.S.-based insurance company. This partnership aims to transform IT service delivery by enhancing operational efficiency through automation across application development and infrastructure.

Furthermore, HCLTech has won contracts to design and implement a new IT setup for a Europe-based global foods company and manage AI data centers for a major global technology firm.

During the quarter, HCLTech also received a Gold certificate from EcoVadis, positioning it among the top 4% of rated IT companies. The company was recognized as the fastest-growing tech services brand among India’s top ten most valuable brands by Kantar BrandZ 2025 and featured in Forbes’ World’s Best Employers list for the sixth consecutive year.

HCLTech continues to innovate and expand its offerings, reaffirming its commitment to delivering advanced technology solutions to clients worldwide. For additional information, visit HCLTech’s official website at hcltech.com.