HCLTech revenue hits $3.5Bn in Q3 despite global tech market slowdown

BENGALURU, INDIA — HCLTech, a global leader in technology services, reported $3.5 billion in revenue for the third quarter of fiscal year 2025, ending December 31, 2024. The company’s revenue grew by 4.1% year-on-year (YoY) in constant currency (CC), while its EBIT margin improved to 19.5%, showcasing operational strength.
The services segment posted a 4.9% YoY growth (CC), with digital services leading at 6.3% YoY (CC). Additionally, HCLSoftware achieved an annual recurring revenue (ARR) of $1.02 billion, emphasizing the company’s diversified growth strategy.
Revised guidance and $2.1Bn in new deals
HCLTech revised its FY25 revenue growth guidance to 4.5%-5% (CC), narrowing it from the earlier range of 3.5%-5%. The EBIT margin guidance was retained at 18%-19%. The company secured $2.1 billion in new deal bookings during the quarter, reflecting strong demand for its AI-driven and digital transformation services.
CEO and Managing Director C Vijayakumar remarked, “Our growth is powered by broad-based performance across business lines as clients reaffirm their confidence in our Digital and AI offerings… We are positioning ourselves for a future that is transformative, with AI empowering both businesses and employees.”
Regional and industry highlights
The Americas led regional growth with a 6.2% YoY increase (CC), followed by Europe at 2.6% YoY and the Rest of the World at 2.9% YoY.
Industry-wise, Telecommunications, Media, Publishing & Entertainment recorded exceptional growth of 33% YoY (CC), while Retail & Consumer Packaged Goods expanded by 17% YoY (CC).
Dividend announcement and workforce updates
In celebration of its 25th year as a publicly listed company, HCLTech declared a dividend of ₹18 (US$0.21) per share, including a special ₹6 (US$0.069) per share dividend.
The company also hired over 2,000 freshers during the quarter, while attrition rates improved to 13.2%.
Mixed investor sentiment despite strong metrics
Despite meeting expectations on key metrics, HCLTech’s shares declined nearly 10% due to muted commentary on near-term growth prospects.
Analysts remain divided; some highlight strong fundamentals and AI-led opportunities, while others flag concerns over slower large-deal momentum compared to peers.
Strategic wins strengthen AI and software portfolio
HCLTech expanded its GenAI capabilities through strategic deals across industries such as biopharma, retail, civil aviation, and semiconductors. Notable wins included partnerships with a U.S.-based biomedical company for AI-driven healthcare solutions and a Japan-based semiconductor firm for next-gen automotive technology.
With robust quarterly results and an evolving AI-driven strategy, HCLTech remains well-positioned for long-term growth despite short-term challenges in the IT services sector.