India's HCLTech narrows annual revenue forecast on deal momentum

Company Performance - HCLTech reported a third-quarter revenue of 338.72 billion rupees ($3.8 billion), a 13.3% increase year-over-year, surpassing analysts' expectations of 330.46 billion rupees [1] - The company's profit for the quarter decreased by 11.2% to 40.76 billion rupees, falling short of the average estimate of 46.81 billion rupees [4] - AI revenue reached $146 million, up from $100 million in the previous quarter, marking the first time the company disclosed this breakdown [4] Revenue Growth Forecast - For fiscal year 2026, HCLTech narrowed its revenue growth forecast to 4% to 4.5%, down from a previous range of 3% to 5% [2] Sector Trends - The Indian IT industry, valued at $283 billion, is expected to report muted performance due to weak demand in the U.S. as clients delay non-essential tech spending amid macroeconomic uncertainties [2] - Holiday-period shutdowns typically affect earnings in the December quarter, but HCLTech does not usually experience a year-end slump due to product license renewals during this period [3] Business Segments - Revenue from banking and technology verticals grew by 8.1% and 14.4% respectively, while revenue from life sciences declined by 2% [5] - New deal bookings for the quarter amounted to $3 billion, an increase from $2.57 billion in the previous quarter and $2.09 billion in the same period last year [5] Market Context - HCLTech's shares closed 0.37% higher ahead of the results, indicating positive market sentiment [5] - Tata Consultancy Services, a major competitor, also exceeded revenue estimates, while Infosys, Wipro, and Tech Mahindra are set to report their results later this week [6]