# HCL Technologies Narrows Revenue Outlook as September Quarter Sales Rise 2%

- URL: https://stocks.freetheai.org/news/hcl-technologies-narrows-revenue-outlook-as-september-quarter-sales-rise-2-1c3af7
- Published: 2026-10-13T04:16:51Z
- Category: earnings; sentiment: mixed; impact: medium
- Symbols: [NSE:HCLTECH](https://stocks.freetheai.org/symbols/NSE-HCLTECH)
- Written by our AI from expert market sources across the web for FreeTheAI Stocks, built by Vibhek Soni
- How write-ups are made: https://stocks.freetheai.org/how-we-write
- Not financial advice: https://stocks.freetheai.org/disclaimer

HCL Technologies Limited (NSE:HCLTECH) posted a 2% sequential revenue increase to $3,724 million for the September quarter, rebounding after two straight quarters of decline. Growth was propelled by deal ramp-ups and revenue from recently acquired businesses. The IT services provider secured $3,258 million in total contract value for new deals, its highest quarterly booking total since September 2023, while adding 6,450 workers in its largest headcount expansion in 16 quarters.

Despite the operational gains, the firm maintained a reserved stance on its outlook. Management narrowed its constant-currency full-year revenue growth forecast to 2.5-4%, from a previous range of 1-4%, while holding operating margin guidance steady at 17.5-18.5%. The conservative target reflects ongoing global geopolitical uncertainty and revenue pressure from artificial intelligence automation, which management described as AI deflation. Annualized AI-related revenue reached $876 million, accounting for 6% of overall revenue, with these contracts offering higher profitability than traditional IT services.

Investors will closely monitor business performance during the second half of the fiscal year, a period typically affected by holiday-related seasonal weakness and client IT budget planning. Market focus will center on whether ongoing project ramp-ups and expanding data center capacity can offset these seasonal pressures and broader market caution.

## Key points

- HCL Technologies reported $3,724 million in September quarter revenue, representing a 2% sequential increase after two quarters of decline.
- New deal wins reached $3,258 million in total contract value, marking the company's highest booking total since the September 2023 quarter.
- Full-year constant-currency revenue growth guidance was narrowed to 2.5-4% from 1-4%, while operating margins were kept at 17.5-18.5%.
- Annualized AI revenue reached $876 million, representing 6% of total revenue and delivering higher margin profiles than core services.

## Questions and answers

### What were HCL Technologies' September quarter results?

HCL Technologies reported revenue of $3,724 million for the September quarter, representing a 2% sequential growth after two consecutive quarters of decline. The company secured $3,258 million in new deal total contract value and added 6,450 headcount sequentially.

### What is HCLTech's full-year revenue growth guidance?

HCLTech narrowed its full-year revenue growth guidance to 2.5-4% in constant currency terms, compared to its previous range of 1-4%. Operating margin guidance was kept unchanged at 17.5-18.5%.

### How much revenue does HCLTech generate from AI?

HCLTech reported $876 million in annualized AI revenue, which accounts for 6% of its total revenue. Management noted that AI revenue carries a higher margin profile than the rest of its business.