HCL Technologies (HCLTECH) Q4 25/26 (Media) earnings summary

Executive summary

• Celebrated 50 years of operations, inclusion in Fortune's World's Most Admired Companies 2026 list, and approved audited consolidated and standalone financial results with unmodified audit opinions.

• FY 2026 began amid market uncertainty, with persistent tariff volatility and softened discretionary spending in traditional segments.

• Strong focus on AI, with nearly every deal now including AI or GenAI components; Advanced AI annualized revenue reached $620 million.

• Achieved industry-leading organic growth for the third consecutive year among scale players.

• Interim dividend of ₹24 per equity share declared for FY 2026-27, with a record date of April 25, 2026.

Financial highlights

• FY 2026 consolidated revenue: $14.7 billion (₹130,144 crore), up 3.9% in constant currency year-over-year.

• Operating margin for FY 2026: 17.2%; excluding restructuring, 17.9% (down 40 bps YoY).

• Consolidated net profit for FY 2026 was ₹16,652 crore; total comprehensive income was ₹20,361 crore.

• HCLSoftware revenue: $1.4 billion (₹11,994 crore), ARR $1.05 billion, both declined YoY.

• Operating cash flow: INR 19,975 crore; free cash flow: INR 18,553 crore; cash conversion ratios above 100%.

Outlook and guidance

• FY 2027 revenue growth guidance: 1%-4% in constant currency; services guidance 1.5%-4.5%.

• EBIT margin guidance for FY 2027: 17.5%-18.5%.

• Guidance band widened due to market volatility, client-specific reductions, and discretionary spending assumptions.

• Two client-specific headwinds in Americas expected to impact growth by 50 bps in FY 2027.

• Excluding one-time impacts, profit for the group was ₹17,371 crore for FY 2026.