HCL Technologies Q3: Will the IT major tweak revenue guidance for FY26? Key points you need to know

According to industry experts, the IT sector is unlikely to post any positive surprises for Q3 FY26.

Q3: Seasonally weak quarter

The Q3 quarter is already a seasonally weak quarter due to furloughs and holidays.

Analysts tracking the sector believe the impact of furloughs and holidays in Q3 is likely to be similar to that seen last year. Demand beyond essential services or in select pockets has also not shown any significant change during the period.

Q3 is expected to have a greater influence on topline growth, as BFS typically sees the usual impact of furloughs compared with other verticals. At the same time, BFS remains the only silver lining amid a challenging macroeconomic environment.

What to expect from HCL Technologies?

HCL Technologies, according to analysts, may post around 2% QoQ growth in constant currency terms, driven by seasonally strong performance in its Products and Platforms business and some recovery in retail, consumer packaged goods, and healthcare.

Key monitorables

The company's commentary on deal momentum, deal pipeline, guidance for FY26, attrition, hiring, AI projects, and the outlook for the coming quarters will be keenly tracked.

Besides, the demand environment in key geographies and key business verticals will serve as the major cues for the market participants and other stakeholders.

The company in Q2 revised its Services Revenue growth (CC) guidance to 4%-5%, while retaining the overall revenue and margin guidance for FY26.

HCL Technologies: Recent updates

HCLTech acquires HPE Telco Solutions for $160M

HCL Technologies (HCLTech) in December 2025 announced it would purchase the Telco Solutions Business of Hewlett Packard Enterprise for a total purchase price of up to $160 million.

The purchase price includes $15 million of incentives based on FY25 performance.

"HCLTech to acquire Telco Solutions Business from Hewlett Packard Enterprise (HPE) to further strengthen its engineering and AI-led network propositions to global communication service providers," the company said in a release.

The move deepens HCLTech's engineering, AI, and cloud-native offerings for the telecom industry, it added.

The all-cash deal has a total purchase price of up to USD 160 million, including USD 15 million of incentives based upon FY25 performance, HCLTech said in a BSE filing.

HCL Tech & Aurobay expand digital partnership

in December itself, HCL Technologies and Aurobay Technologies (a division of Horse Powertrain) widened their digital transformation partnership to support the latter's global growth strategy.

HCLTech said it would be Aurobay Technologies' partner for managing and optimising SAP, Siemens Teamcenter PLM software, and integration services in Sweden and China.

"HCLTech, a leading global technology company, and Aurobay Technologies, a division of Horse Powertrain and a global leader in hybrid and low-emission powertrain solutions, have expanded their digital transformation partnership to support Aurobay's global growth strategy," according to a release.

HCLTech joins Microsoft Discovery Platform to accelerate research innovation

In December 2025, HCLTech announced that it had joined the Microsoft Discovery platform, an advanced agentic AI platform designed to accelerate scientific breakthroughs.

As part of this collaboration, HCLTech will participate in deep technical onboarding sessions with Microsoft’s Discovery team to align platform architecture and partner collaboration models and explore joint go-to-market opportunities.

Following onboarding, HCLTech will take part in projects to accelerate solutions in areas such as chemistry and materials science, drug discovery, and semiconductor design, leveraging its strong domain expertise across industries.

Through the Discovery initiative, HCLTech joins a select group of research institutions and tech innovators shaping the next frontier of innovation.

HCLTech Q2 FY26 Results

HCLTech reported a flat net income of ₹4,235 crore in the second quarter of 2025-26 (Q2FY26) compared to last year, even as its revenue was up 10.7% to ₹31,492 crore, helped by financial services and technology business verticals.

That also helped India’s third-largest information technology (IT) services exporter to raise the lower end of its guidance.

HCLTech had also raised its guidance for its services vertical for the fiscal year 2026 (FY26).

For HCL Tech's Q2 FY26 (July-Sept 2025), the company reaffirmed its full-year guidance of 3-5% revenue growth and 17-18% EBIT margin (constant currency), while raising its services revenue growth forecast to 4-5%.

On a dollar basis, revenue was up 5.8% year-on-year (Y-o-Y) and 4.6% on a constant currency basis, which discounts the volatility of currency movements.

“Our artificial intelligence (AI) strategy is built on vertical lines and intellectual property spread across services and software," the company said.

"Over the past few years, we have made significant investments in building intellectual property (IP), deepening partnerships, and strengthening our go-to-market strategy as we move from AI pilot to AI monetisation," said C Vijayakumar, managing director and chief executive officer (MD & CEO) of HCLTech.