HCL Technologies Ltd

HCL Technologies Limited reported strong performance in Q2 FY27, with services revenue growing 3% sequentially and 4% YoY, driven by Advanced AI services, which saw a 28.4% sequential increase in revenue to $219 million. The company noted a 131 basis point sequential improvement in EBIT margin to 18.2%, supported by higher-margin Advanced AI offerings and operational efficiencies. New bookings reached $3.3 billion, a 27% YoY increase, with AI being a central theme in major deals. The company emphasized its AI strategy across five pillars, including expanding AI IP, scaling strategic partnerships, and developing AI talent. Software revenue declined 5.8% sequentially but showed 7.8% YoY growth in ARR. The company guided FY27 revenue growth between 2.5% to 4% and EBIT margin between 17.5% to 18.5%. Management highlighted cautious optimism about the demand environment, noting strong AI adoption and a healthy pipeline despite fluid market conditions. The company also announced strategic moves, including the acquisition of Robotiq.ai and the launch of HCLTech Pulse for fast-growing enterprises.

The document highlights strong revenue growth in services, margin expansion, and strategic AI initiatives, indicating a positive tone.