HCL Technologies Ltd.EBIT margin 18.2%, Advanced AI $219M

HCL Technologies reported Q2 FY27 revenue of $3,724 million, up 2.3% sequentially and 2.6% year-on-year in constant currency.

Services revenue was $3,442 million, up 3% sequentially, while software revenue fell 5.8% sequentially and 11.2% year-on-year on fewer multi-year licence renewals; software ARR rose 7.8% to $1.134 billion. EBIT margin was 18.2%, up 131 basis points sequentially, or 19% before restructuring of 84 basis points. Advanced AI revenue reached $219 million, up 28.4% sequentially, and new bookings were $3.3 billion, the second highest in the company's history.

Net income was $538 million. Management announced a global Premier partnership with Anthropic and plans for an AI data centre in Bhubaneswar. FY27 growth guidance is now 2.5% to 4% in constant currency, including acquisitions, with services at 3% to 4% and EBIT margin of 17.5% to 18.5% unchanged. The CEO said the environment remains fluid and the company does not want to raise guidance, though it expects services slightly above the midpoint. An interim dividend of ₹12 per share was declared.