HCL Technologies delivered exceptional Q3 FY26 results, demonstrating strong performance across revenue growth, bookings, and margin improvement. The company reported revenue of $3.79 billion for the quarter ended December 31, 2025, marking significant growth momentum in a challenging market environment.

Financial Performance Highlights

The company's financial metrics showcased robust growth across multiple dimensions:

The services business demonstrated consistent performance with IT and Business Services growing 3.8% year-over-year and 1.5% sequentially, while Engineering and R&D Services showed particularly strong momentum with 10.8% year-over-year and 3.1% sequential growth in constant currency terms.

Segment-wise Performance Analysis

HCLSoftware delivered exceptional quarterly performance with 28.1% sequential growth in constant currency, benefiting from seasonal uptick and healthy year-over-year expansion. The division's annual recurring revenue stood at $1.07 billion, representing a 0.6% increase year-over-year in constant currency, fueled by strong traction in data intelligence business.

Geographically, the company saw broad-based growth with India leading at 15.8% year-over-year growth, followed by Rest of the World at 22.1%, Europe at 4.6%, and USA at 1.5% in constant currency terms. Five out of seven verticals registered year-over-year growth, with Financial Services and Technology leading at 8.1% and 14.4% respectively.

AI-Driven Business Transformation

The company's AI strategy continues to drive significant business momentum across four key pillars. Advanced AI services grew 19.9%, led by strong uptick in Agentic physical AI and AI factory programs. The flagship AI Force platform now has specific SKUs deployed across 60 priority accounts, demonstrating substantial market adoption.

The company secured several major AI-driven engagements, including a $473 million five-year strategic partnership with a global apparel retailer to modernize application and data landscape using the Agentic AI Force 2.0 platform.

Strategic Acquisitions and Market Expansion

HCL Technologies strengthened its market position through strategic acquisitions in the telecommunications sector, acquiring Telco Solutions Business from Hewlett Packard Enterprise. This move builds on the successful integration of HPE's Communications Technology Group acquired in 2024, positioning the company as a comprehensive system integrator with extensive telecom IP portfolio.

The company also announced acquisitions of Jaspersoft and Wobby to enhance its data and analytics capabilities, creating a unified end-to-end data intelligence platform that addresses growing demand for metadata management and governance solutions.

Updated Financial Guidance

Based on strong quarterly performance and sustained growth momentum, HCL Technologies raised its full-year guidance:

The company maintains strong financial health with gross cash of $3.82 billion, net cash of $3.55 billion, and healthy cash generation metrics. Operating cash flow reached $2.5 billion over the last 12 months, while free cash flow amounted to $2.35 billion, demonstrating robust cash conversion capabilities.

HCL Technologies has announced a strategic leadership appointment, elevating company veteran Sandeep Saxena to Chief Growth Officer – Growth Markets 2. The appointment underscores HCLTech's commitment to strengthening its presence in India and other key strategic markets including the Middle East and Africa.

Strategic Focus on India Market

The leadership change reflects HCLTech's strategy to sharpen its focus on the India region, recognizing the country's significant growth potential. Saxena will be based in Mumbai and will report directly to CEO & Managing Director C Vijayakumar.

Commenting on the appointment, C Vijayakumar emphasized HCLTech's role in shaping India's technology growth story through sustained innovation and global leadership. He highlighted India's position as one of the world's fastest-growing economies, presenting significant opportunities for the company to leverage its global scale, deep expertise, and full-stack capabilities.

Leadership Experience and Background

Sandeep Saxena brings extensive experience to his new role, having joined HCLTech in 1998 and held multiple positions across various geographies during his tenure with the company. His career highlights include:

• Playing a key role during the rapid growth phase of HCLTech's European business
• Leading the Retail-CPG, Travel, Transportation & Logistics, Energy & Natural Resources segments for Europe
• Managing all non-financial services verticals for France, Italy, and Iberia
• Delivering major client wins and strengthening HCLTech's market position

Expressing his commitment to the new role, Saxena stated that the focus will be on driving client relevance through innovative, future-ready solutions that deliver measurable and transformative impact.

Alignment with National Vision

The appointment aligns with HCLTech's commitment to advancing the Government of India's Viksit Bharat and Digital India vision. The company aims to drive public sector digital transformation and build globally relevant intellectual property from India, leveraging its position as a leading global technology company.

Company Overview

HCLTech operates as a global technology company delivering industry-leading capabilities centered around AI, digital, engineering, cloud, and software, supported by a broad portfolio of technology services and products. The company serves clients across major verticals including Financial Services, Manufacturing, Life Sciences and Healthcare, High Tech, Semiconductor, Telecom and Media, Retail and CPG, Mobility, and Public Services.