HCL Technologies Limited Q2 2027 Earnings Recap

HCLTech shares rose 9.0% after earnings, with the quarter’s clearest positives being 3.0% sequential services growth, 131 basis points of sequential EBIT margin expansion, and $3.3 billion in bookings. The main offset was software revenue, down 5.8% sequentially, which weighed on overall growth.

Key Takeaways

• Services revenue grew 3.0% sequentially and 4.0% year-on-year; organic sequential growth was 2.3%.
• Overall revenue rose 2.3% sequentially and 2.6% year-on-year, held back by software revenue declines of 5.8% sequentially and 11.2% year-on-year. Software ARR was up 7.6% year-on-year at $1.134 billion.
• EBIT margin was 18.2%, up 131 basis points sequentially and 71 basis points year-on-year; management said it came ahead of its expectations.
• New bookings reached $3.3 billion, up 27% year-on-year and 35% sequentially. Management described it as the second-highest bookings quarter in company history.
• Advanced AI revenue grew 28.4% sequentially and 78% year-on-year to $219 million; annualized revenue reached $876 million.