HCLTech delivers strong Q2 led by record deal bookings of $3.3 billion

HCLTech posts record bookings, strong AI growth, and expanding margins in Q2 FY27.

What the company is saying

HCLTech is emphasizing robust financial performance for the quarter ended September 30, 2026, highlighting USD revenue of $3.7 billion (up 2.2% YoY) and a 131 bps QoQ expansion in EBIT margin to 18.2%. The company frames its narrative around record new bookings of $3.3 billion (up 27% YoY), rapid growth in advanced AI revenue (28.4% QoQ, 78% YoY in CC), and a growing workforce now exceeding 230,000. CEO C Vijayakumar attributes the strong quarter to broad-based growth across verticals, geographies, and advanced AI offerings, stating that AI propositions are resonating with clients. CFO Shiv Walia points to the highest-ever quarterly net income of ₹5,132 crores (up 11% QoQ, 21.2% YoY) and improved profitability. The company also revises FY27 revenue growth guidance to 2.5%-4% YoY in CC and EBIT margin guidance to 17.5%-18.5%, signaling continued confidence. HCLTech spotlights a new Global Premier Partnership with Anthropic to accelerate enterprise AI adoption, and lists several major deal wins. The tone is assertive, with a focus on realized results, operational momentum, and strategic positioning in AI.

What the data suggests

The reported figures show HCLTech is delivering steady growth and margin improvement. USD revenue reached $3.7 billion, up 2.2% YoY, with constant currency revenue up 2.6% YoY. EBIT margin expanded to 18.2%, a 131 bps QoQ increase, and quarterly net income hit a record ₹5,132 crores, up 11% QoQ and 21.2% YoY. New bookings surged to $3.3 billion, up 27% YoY, with first half bookings at a record high, indicating strong sales momentum. Advanced AI revenue was $219 million for the quarter, with annualized advanced AI revenue at $876 million, reflecting 28.4% QoQ and 78% YoY growth in CC. HCLSoftware’s annual recurring revenue stands at $1.13 billion. Revenue per employee per annum is $65.4K, up 2.4% YoY, and the workforce grew by 6,450 in Q2, including 6,136 freshers, with gender diversity at 30%. Segment growth was led by Retail and CPG (14% YoY in CC), Financial Services (7.1%), and Technology and Services (5.9%). India posted the fastest geographic growth at 21.8% YoY in CC. The company’s guidance for FY27 is for 2.5%-4% revenue growth in CC and 17.5%-18.5% EBIT margin, which is consistent with current trends. The data supports management’s claims of operational strength and AI-driven momentum, with most forward-looking statements grounded in recent realized performance.

Analysis

The announcement is highly factual and supported by a broad set of realised financial and operational metrics, including revenue, EBIT margin, net income, bookings, and segment/geographic growth. The majority of claims are realised and quantified, with only a small portion of the release devoted to forward-looking guidance or aspirational statements (e.g., FY27 guidance, partnership plans). The tone is positive but proportionate to the strong results: net income and EBIT margin both improved significantly, and advanced AI revenue growth is substantiated with specific figures. There is no evidence of narrative inflation or overstatement; the language around partnerships and deal wins is factual and does not exaggerate their impact. No large capital outlay is disclosed without immediate earnings impact, and the execution distance for most benefits is immediate, as evidenced by the quarterly results. Awards and recognitions are mentioned but do not dominate the narrative or substitute for financial performance.

Risk flags

• ●Sustaining high advanced AI revenue growth rates may be challenging as the segment matures, especially given the 78% YoY and 28.4% QoQ growth already realized; any slowdown could impact overall growth momentum.
• ●The company’s revised FY27 guidance for 2.5%-4% revenue growth in constant currency is modest relative to the pace of recent bookings, suggesting potential headwinds in conversion of bookings to revenue or macroeconomic uncertainty.
• ●Execution risk exists around the integration and scaling of new AI partnerships, particularly the Global Premier Partnership with Anthropic; successful monetization depends on client adoption and operational rollout.
• ●Rapid workforce expansion, including 6,136 freshers in a single quarter, could pressure near-term productivity and margin if onboarding and utilization are not well managed.
• ●While geographic and segment diversification is strong, the U.S. market grew only 3.5% YoY in CC, which may signal slower expansion in a key geography compared to India’s 21.8% YoY growth.

Bottom line

HCLTech’s Q2 FY27 results show broad-based growth, with USD revenue up 2.2% YoY to $3.7 billion, EBIT margin expanding to 18.2%, and net income reaching a record ₹5,132 crores. Advanced AI revenue is a standout, with $219 million for the quarter and $876 million annualized, supporting management’s narrative of AI-driven momentum. New bookings of $3.3 billion (up 27% YoY) and record first half bookings point to a strong sales pipeline. The company’s revised FY27 guidance for 2.5%-4% revenue growth and 17.5%-18.5% EBIT margin is credible given current trends, but leaves limited room for upside surprise. Risks include sustaining AI growth, integrating new partnerships, and managing rapid workforce expansion. The most important takeaway is that HCLTech is delivering on both top-line and margin improvement, with AI now a material revenue contributor. Investors should watch for conversion of bookings to revenue and continued execution on AI partnerships in the coming quarters.

Announcement summary

(NSE: HCLTECH) (BSE: HCLTECH) HCLTech reported financial results for the quarter ended September 30, 2026. USD revenue for the quarter was $3.7 billion, representing a 2.2% year-over-year increase, while revenue in constant currency grew 2.6% year-over-year. New bookings reached $3.3 billion, up 27% year-over-year, bringing first half bookings to a record high. EBIT margin expanded by 131 basis points quarter-over-quarter to 18.2%. Services revenue grew 3% quarter-over-quarter, and overall revenue increased 2.3% quarter-over-quarter. Advanced AI revenue grew 28.4% quarter-over-quarter and 78% year-over-year in constant currency, with quarterly advanced AI revenue at $219 million and annualized advanced AI revenue at $876 million. HCLSoftware's annual recurring revenue stood at $1.13 billion. Revenue per employee per annum was $65.4K, up 2.4% year-over-year. IT and Business Services grew 4.4% year-over-year in constant currency, while Engineering and R&D Services grew 2.1% year-over-year in constant currency. Industry vertical growth was led by Retail and Consumer Packaged Goods at 14% year-over-year in constant currency, followed by Financial Services at 7.1% and Technology and Services at 5.9%. The U.S. geography grew 3.5% year-over-year in constant currency, India grew 21.8%, and Rest of the World grew 11.4%. The company revised its FY27 revenue growth guidance to 2.5%-4% year-over-year in constant currency and Services revenue growth guidance to 3%-4% year-over-year in constant currency. EBIT margin is expected to be between 17.5% and 18.5%. HCLTech announced a dividend of ₹12 per share for the quarter. Q2 FY27 revenue was ₹35,620 crores, up 3% quarter-over-quarter and 11.5% year-over-year. Quarterly net income reached a record ₹5,132 crores, up 11% quarter-over-quarter and 21.2% year-over-year. The company added 6,450 people to its workforce in Q2 FY27, including 6,136 freshers. Gender diversity reached 30% during the quarter. HCLTech announced a Global Premier Partnership with Anthropic to accelerate enterprise adoption of Agentic AI, focusing on safety, cybersecurity, and governance. HCLTech's services teams will build industry solutions powered by Claude, Cowork, and Claude Code, and HCLSoftware will embed these into select enterprise products as an Anthropic ISV partner. Key advanced AI deal wins included partnerships with a U.S.-based AI-native company for its AI Factory, a U.S.-based neocloud provider for AI-native architecture and infrastructure, and a Europe-based manufacturing company for an AI-powered visual inspection platform, VisionX. Other key deal wins included a Europe-headquartered Fortune Global 50 firm for an AI-driven operating model, a Europe-based FMCG major for unified AI-led IT operations, and a global aerospace and defense major for SAP S/4HANA managed services. HCLTech was named to TIME's World's Best Companies list for the third consecutive year, Forbes' World's Best Employers and World's Best Management Consulting Firms, and Newsweek's America's Greatest Workplaces for Leadership and Perks & Benefits. As of September 2026, HCLTech had more than 230,000 employees across 60+ countries and consolidated revenues of $14.8 billion for the trailing twelve months.

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