HCL Technologies Ltd. share price target

HCL Tech posted a strong Q3 FY26 with broad-based growth, solid deal wins, and margin expansion. The company reaffirmed its Services growth guidance to 4–5% YoY CC, maintaining overall guidance at 3–5% YoY CC, and EBIT margin at 17–18% despite near-term wage headwinds.

delivering industry-leading capabilities centered around digital, engineering, cloud and AI, powered by a broad portfolio of technology services and products. Q3FY26 Performance: HCLTech reported revenue of US$3,793 mn, up 4.1% QoQ/ 7.4% YoY (in CC terms up 4.2% QoQ/ 4.8% YoY). The services business was up by 1.8% QoQ/5% YoY CC. EBIT margin at 18.6% (ex-one-time impact from new labour code of 956 crore), was up ~118 bps QoQ, Services (IT & Business services and ER&D services) margin stood at 16.4%, down ~10 bps QoQ. PAT stood at 4,795 crore, up 13.2% QoQ/ 4.4% YoY while ex-one-time impact from new labour code of...

HCL Technologies delivered a standout Q3FY26, driven by resilient growth, strong deal bookings, and expanding AI leadership. Revenue rose 4.8% CC YoY to USD 3.8bn, supported by balanced momentum across services including engineering & software. ER&D services remained the key growth engine, reflecting rising demand for advanced AI, Physical AI, and custom silicon solutions. Net new bookings surged to USD 3bn, the highest in four years, highlighting sustained client confidence. Margins improved sequentially, backed by disciplined cost management and operating leverage which were partially offset by wage hikes and restructuring...

HCL Technologies (HCLT) reported 3QFY26 revenue of USD3.8b, up 4.2% QoQ CC, above our estimate of 2.3% QoQ CC growth. EBIT margin came in at 18.6% vs. our estimate of 18.1%.

The company showcased strong strategic progress, marked by record deal wins, healthy client expansion, and increasing enterprise adoption of its proprietary AI and digital platforms. Growing traction in the modernisation programmes, deepened technology partnerships and consistent execution across key verticals highlight its strengthening market position. Management maintains growth and margin guidance, reflecting confidence in the demand environment, a scalable innovation pipeline and...

HCLT reported a strong beat on revenue driven by broad-based growth across key verticals. HCLT has quantified ‘Advance AI’ revenue of USD 100mn for Q2 (3% of overall revenue on annualised basis). It acknowledged the deflationary impact in renewal deals with a reduction in overall ACV in 5 out of 10 large deals.

Q2FY26 Performance: HCLTech reported revenue of US$3,644 mn, up 2.8% QoQ & 5.8% YoY (up 2.4% QoQ/ 4.6% YoY in CC terms). The services business was up by 2.5% QoQ/ 5.5% YoY CC. EBIT margin at 17.4%, was up ~110 bps QoQ. Services (IT & Business services and ER&D services) margin stood at 16.5%, up ~90 bps QoQ....

We recommend a HOLD rating on the stock.

HCL Tech posted a strong Q2 FY26 with broad-based growth, solid deal wins, and margin expansion. The company raised its Services growth guidance to 4–5% YoY CC, maintaining overall guidance at 3–5% YoY CC, while reaffirming EBIT margin at 17–18% despite near-term wage headwinds.

HCL Technologies (HCLT) reported 2QFY26 revenue of USD3.6b, up 2.4% QoQ CC vs. our estimate of 1.7% QoQ CC growth. EBIT margin came in at 17.4% vs. our estimate of 16.8%.

We hosted the management of HCL Technologies (HCLT) for a two-day NDR in London on 16th-17th Jul’25. Discussions focused heavily on GenAI, delivery model evolution, and margin outlook.

HCLTech delivered 3.7% YoY revenue growth despite a seasonal 0.8% sequential dip, driven by strong demand in technology, telecom, retail, and financial services, with solid performance in Europe and the Rest of the World. Operating margins declined to 16.3% due to lower utilization from early hiring, a client bankruptcy, and continued investments in GenAI and go-to-market capabilities. Services grew 4.5% YoY, while software revenue declined 3%YoY. Bookings totaled USD 1.8bn, with two large deals delayed to Q2, supporting confidence in near-term growth. Company deepened its AI-led strategy through partnerships...

The revenue growth performance was tad below our estimates, largely attributed to the P&P business (down 7.1% QoQ CC), while Service business growth was flat CC QoQ despite macro volatility. The revenue guidance improvement at the lower band by 100bps eliminates the odds of hitting the worst, while improved discretionary spends on Financial Service and Technology verticals further boosts management confidence to deliver growth within the guidance band. However, the tariff sensitive verticals (Manufacturing, Retail, Healthcare) continue to see execution deferrals and...

We have rolled forward our valuation to Jun’27 estimates. We value HCL Tech at
23.0x Jun’27 EPS (at +1 SD to 7-year avg NTM P/E), implying a target price of INR
1,693. HCL Tech is currently trading at a 1-year fwd. P/E of 24.0x (in-line with its 1- year Avg. NTM P/E). We reiterate our “HOLD” rating on the stock.

We resume our coverage with a HOLD rating on the stock.

HCL Technologies (HCLT) reported 1QFY26 revenue of USD3.5b, down 0.8% QoQ CC vs. our estimate of 1.2% QoQ CC decline.

HCL Tech reported revenues of $3,545 million, up 1.3% q-o-q/5.4% y-o-y in line with our estimate of $3,543 million. In CC terms, revenue growth in Q1FY26 was down 0.8% q-o-q/up 3.7% y-o-y.

HCL Technologies delivered a strong performance in Q4FY25, driven by robust execution in IT services, healthy cash flows, and sustained momentum across key segments. The management remains cautiously optimistic about growth in FY26, acknowledging macroeconomic uncertainties while continuing to win large deals and forge strategic partnerships. The company has built a strong pipeline, particularly in AI, engineering, and digital services, backed by disciplined capital allocation and differentiated capabilities. Given its consistent execution, strategic focus, and strong...

HCLT’s FY26 revenue organic guidance of 1–4% YoY CC appears optimistic at its upper end, implying -0.6% to 0.9% organic CQGR. It is supported by an exit growth rate of 1.6%. Management mentioned that it did not see any project deferral or rampdown due to tariff-related uncertainties in Q4FY25.