HCL Technologies Limited — Investor Meet, 17-10-2025: Analysts/Institutional Investor Meet/Con. Call Updates

HCLTech reported a strong Q2 FY26 with $3,644 million revenue, up 2.4% sequentially and 4.6% year-on-year in constant currency. Services revenue grew 2.5% sequentially and 5.5% year-on-year in constant currency. While overall Software revenue declined 3.7% year-on-year in constant currency, its Subscription & Support and Professional Services revenue grew 8%. Operating margins expanded to 17.5%, a 116 basis points sequential increase, aligning with recovery plans.

New bookings reached a record $2.6 billion this quarter without a mega-deal. Advanced AI revenue hit $100 million, representing 3% of total revenue, as the company transitions from pilot to monetization. Management emphasizes leveraging AI with differentiated IPs like the AI Force platform and expanding new AI-led services. The full-year Services revenue growth outlook was raised to 4-5% in constant currency, while the company-level guidance remains 3-5% due to software segment softness. EBIT margin guidance of 17-18% is maintained, reflecting ongoing restructuring and upcoming wage revisions. HCLTech aims for a consistent $2.5 billion net new booking run rate, focusing on an asset-light model and increased local hiring. The sentiment is confident about AI-led growth despite macro uncertainties.