From Financialexpress · Poulomi Chatterjee · · 1m
HCLTech Growth Outlook Improves
HCLTech's AI growth boosts FY28 outlook despite revenue conversion risks.
In brief
HCLTech's AI growth boosts FY28 outlook despite revenue conversion risks. HCLTech's record $3.3 billion Q3 bookings and 28% AI revenue growth improve FY28 outlook while software revenue declines. Originally reported by Financialexpress.
HCLTech's growth outlook improves
HCLTech's record deal bookings and rapidly growing artificial intelligence business strengthen medium-term growth prospects.
Q2 performance boosts FY28 outlook
Strong September-quarter performance improves FY28 visibility with steady margins supporting valuation premium over TCS and Infosys.
Record bookings and AI growth
HCLTech reported $3.3 billion net new bookings including $1.14 billion Mercedes-Benz deal with 6% ai revenue share.
AI revenue growth
Advanced AI revenue rose 28% sequentially to 6% of total revenue with 32 basis points margin contribution.
Software revenue decline
Software revenue declined 5.8% sequentially as fewer multi-year subscription licenses expired.
FY27 growth guidance revised
HCLTech raised lower end of fy27 constant-currency revenue growth to 2.5% from 1% while retaining upper end at 4%.
The big picture
HCLTech's record $3.3 billion Q3 bookings and 28% AI revenue growth improve FY28 outlook while software revenue declines.
