HCL Technologies, India’s third-largest IT services exporter, is set to release its third-quarter FY26 results, with investors watching for signals on its FY26 revenue guidance. The December quarter is typically weak for the sector due to client furloughs and holidays, which slow project execution and revenue recognition. Despite this, analysts expect modest sequential growth of around 2% in constant currency terms, driven by a stronger performance in the Products and Platforms business and a relative bright spot in the banking, financial services, and insurance (BFSI) sector.
The BFSI sector is expected to absorb the impact of furloughs better than other segments, giving it an outsized influence on quarterly topline performance. However, the overall environment remains challenging, with clients prioritizing cost optimization over large transformation programs. Analysts expect some recovery in retail, consumer packaged goods, and healthcare, but caution that the rebound is uneven and fragile.
Investors will be tracking key issues such as deal momentum, the size and quality of the deal pipeline, employee attrition and hiring trends, and the company’s progress in monetizing artificial intelligence (AI) projects. The focus will be on management commentary around FY26 guidance and demand trends across geographies, rather than just the reported numbers.
In the September quarter, HCLTech revised its services revenue growth guidance in constant currency to 4% to 5% for FY26, while retaining its overall revenue and margin outlook. The company has made significant progress in AI monetization, with a strategy built on vertical lines and intellectual property spread across services and software. HCLTech has also made key deals, including the acquisition of the Telco Solutions business of Hewlett Packard Enterprise for up to $160 million, and expanded its digital transformation partnership with Aurobay Technologies.
The company’s AI strategy is expected to be a key driver of growth, with a focus on moving from AI pilots to AI monetization. Investors will be watching to see if HCLTech’s steady execution and selective deal wins will be enough for the company to maintain or adjust its FY26 guidance in a slowing global IT spending environment. Overall, the Q3 earnings will provide insight into HCLTech’s ability to navigate the challenging environment and deliver on its growth expectations.