HCL Technologies (HCLTECH) Q1 26/27 (Media) earnings summary

Executive summary

• Advanced AI revenue reached $171 million, up 10.6% quarter-on-quarter and 62.1% year-on-year, with annualized advanced AI revenue at $688 million.

• Total Q1 bookings hit a record $2.4 billion, excluding a mega deal signed in July.

• Workforce stood at 223,889 as of June 30, 2026, with attrition stable at 12.7% LTM and a net decrease of 3,292 employees quarter-on-quarter.

• Strategic investment of $151 million made in Sarvam, a sovereign AI company, and INR 3,500 crore committed to a new AI data center business.

• Board approved unaudited consolidated and standalone financial results for the quarter ended June 30, 2026.

• Interim dividend of ₹12 per equity share declared for FY 2026-27, with record date July 17, 2026.

Financial highlights

• Total revenue for the quarter was INR 34,579 crore, up 1.8% quarter-on-quarter and 13.9% year-on-year.

• Net income reached INR 4,624 crore (13.4% margin), up 3% quarter-on-quarter and 20.3% year-on-year.

• Net profit for the quarter was ₹4,626 crore, up from ₹3,844 crore in Q1 FY26.

• EBIT was INR 5,831 crore (16.9% margin), up 3.8% quarter-on-quarter and 18% year-on-year.

• Basic EPS for the quarter was ₹17.09, compared to ₹14.18 in Q1 FY26.

• Services revenue grew 1.7% quarter-on-quarter and 14.9% year-on-year to INR 31,748 crore.

• Software revenue rose 3.6% quarter-on-quarter and 4.7% year-on-year to INR 2,960 crore.

• Total comprehensive income for the quarter was ₹4,691 crore.

Outlook and guidance

• FY 2027 revenue growth guidance retained at 1%-4% company level and 1.5%-4.5% for services, both in constant currency.

• Margin guidance maintained at 17.5%-18.5%. Guidance excludes acquisitions.

• Pipeline remains robust with strong bookings expected in Q2.

• Acquisition of Jaspersoft completed on July 1, 2026, to be accounted for in the next quarter.