HCLTech Q4: Revenue dips 3.3% QoQ, flags AI deflation

BENGALURU/NEW DELHI: HCLTech’s results presented a mixed picture, weighed down by client-specific headwinds, delayed procurement decisions and persistent market volatility, even as the company continued to lean into artificial intelligence as a long-term growth driver.
Revenue for the March quarter declined 3.3% sequentially in constant currency (which excludes currency impact) and grew 2.4% year-on-year. In dollar terms, revenue stood at $3.6 billion, down 2.9% quarter-on-quarter but up 5.3% year-on-year.

For FY26, the company reported a 3.9% rise in revenue in constant currency. In dollar terms, revenue grew 6% to $14.6 billion. CEO C Vijayakumar contextualised the performance against a challenging macroeconomic backdrop, noting that tariffrelated volatility persisted while discretionary spending weakened across traditional service lines.

Beyond the quarterly softness, the company flagged a deeper structural shift driven by what it termed “AI-led deflation,” estimating a 2–3% annual impact on revenue streams. As automation and AI adoption rise, traditional deal sizes are shrinking. To offset this, HCLTech is scaling its “advanced AI” portfolio, which has reached an annualised revenue run rate of $620 million. The firm expects AI-native services to grow at 25–30% in the near term.

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