HCLTech Reports Strong Q2 FY26 Performance and Advanced AI Revenue Milestone
HCL Technologies reported robust Q2 FY2026 results with total revenue of $3,644.00 million, up 4.6% YoY. Services revenue grew 5.5% YoY to $3,322.00 million. EBIT margin improved to 17.5%. The company achieved over $100.00 million in Advanced AI revenue, representing 3% of total revenue. New bookings reached $2.60 billion. HCLTech raised its full-year Services revenue growth guidance to 4%-5% in constant currency. The company declared an interim dividend of Rs. 12.00 per share.
*this image is generated using AI for illustrative purposes only.
HCL Technologies , a leading global technology company, has reported robust financial results for the second quarter of fiscal year 2026, showcasing strong growth and a significant milestone in Advanced AI revenue. The company's performance underscores its strategic focus on AI-driven solutions and services.
Key Financial Highlights
- Total revenue reached $3,644.00 million, growing 2.4% quarter-on-quarter and 4.6% year-on-year in constant currency.
- Services revenue stood at $3,322.00 million, up 2.5% quarter-on-quarter and 5.5% year-on-year in constant currency.
- EBIT margin improved to 17.5%, an increase of 116 basis points sequentially.
- Net income for the quarter was $486.00 million, representing 13.3% of revenue.
Advanced AI Revenue Milestone
HCLTech achieved a significant milestone by generating over $100.00 million in Advanced AI revenue, accounting for approximately 3% of total revenue. This achievement reflects the company's strategic investments in AI capabilities and intellectual property.
Strong Bookings and Client Additions
- New bookings for the quarter reached $2.60 billion, marking the first time HCLTech crossed the $2.50 billion mark without any mega deals.
- The company added 2 clients in the $50.00 million category, 14 in the $20.00 million category, and 7 in the $10.00 million category on a year-on-year basis.
AI Initiatives and Partnerships
HCLTech's AI Force platform, now deployed across 47 accounts (up from 35 last quarter), has been instrumental in securing multiple large strategic wins. The company has also announced strategic partnerships to accelerate AI adoption:
- A multi-year partnership with Pearson to co-develop AI-powered products and services.
- Collaboration with MIT Media Lab to shape the future of AI and emerging technologies.
Segment Performance
| Segment | Quarter-on-Quarter Growth | Year-on-Year Growth |
|---|---|---|
| IT and Business Services (ITBS) | 2.6% | 3.8% |
| Engineering and R&D Services (ERS) | 2.2% | 13.4% |
The Software segment revenue stood at $333.00 million, with Subscription & Support and Professional Services revenue growing 8% year-on-year.
Outlook and Guidance
Based on the strong performance, HCLTech has raised its full-year Services revenue growth guidance to 4%-5% in constant currency terms. The company maintains its EBIT margin guidance of 17%-18% for the full year.
C. Vijayakumar, CEO and Managing Director of HCLTech, commented on the results: "This was a strong and energizing quarter for us with broad-based growth, expansion in margins, and exceptional bookings. We are seeing the results of a strategy come to life, and I am proud of how our teams are executing and winning in the market."
As HCLTech continues to invest in Advanced AI propositions, IPs, go-to-market capabilities, and partnerships, it remains well-positioned to address the expanding market and help enterprise clients realize value from their AI investments.
The Board has declared an interim dividend of Rs. 12.00 per share for the quarter, with the record date set for October 17, 2025, and the payment date on October 28, 2025.
Historical Stock Returns for HCL Technologies
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.90% | -0.62% | +0.32% | +3.35% | -20.43% | +75.93% |
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