Hexaware Technologies (HEXT) Q3 26/27 earnings summary

Executive summary

• Q3CY26 revenue was $411.9m, up 1.6% QoQ and 4.3% YoY in USD; constant-currency growth was 1.7% QoQ and 4.5% YoY.

• Results were below expectations amid softness at a GSC client and slower large-deal progress; adjusted EBIT margin was 13.8%.

• Vivek Jetley became CEO on October 28 and plans a 90-day review of strategy, client commitments, sales conversion and forecasting; Q4 revenue guidance was withheld.

• AI strategy spans technology delivery, business operations and AI foundations, supported by Zerovity and the Anthropic partnership.

Financial highlights

• Revenue was INR 39,331m, up 2.3% QoQ and 12.9% YoY; USD revenue grew 1.6% QoQ and 4.3% YoY.

• Reported EBIT margin was 12.2%, down 144 bps QoQ and 253 bps YoY; adjusted EBIT was $56.9m, with a 13.8% margin, up 17 bps QoQ and down 88 bps YoY.

• Reported profit was INR 4,294m, up 30.0% QoQ and 16.1% YoY; basic EPS was INR 7.06, up 30.5% QoQ and 15.9% YoY.

• Reported EBITDA was $74.9m, up 27.7% QoQ and 8.1% YoY; its 18.2% margin includes other income and fair-value changes in contingent consideration.

• Closing cash and investments were $199m; LTM operating cash flow was 109.6% of reported profit.

Outlook and guidance

• No Q4CY26 revenue outlook was issued during the CEO transition; Q4 is expected to follow usual seasonality, including fewer working days and a sequential decline.

• CY2026 reported EBIT margin guidance was narrowed to 13%–13.5%; year-to-date Q3 EBIT margin was 13.6%.

• Q4 margin pressures include seasonality and merit increases, with realization, operational improvements and Netherlands restructuring benefits as tailwinds; merit increases are expected to affect margin by close to 100 bps.

• Financial services is expected to grow below the overall average; Healthcare and Insurance is expected to be a strong YoY growth driver, while Travel and Transportation is expected to remain soft.

• Netherlands restructuring is expected to lift annual operating margin by ~40 bps, with no incremental charges expected from Q4 and completion planned by Q2CY27.