HCLTech Q2 FY27 earnings call: guidance band narrows as bookings and margin step up
Outlook
- FY27 revenue growth guidance is now 2.5% to 4%, including 87 bp from acquisitions. Services guidance is 3% to 4%, including 62 bp inorganic[1].
- Management said the organic midpoint is broadly unchanged and Services is likely to land above the midpoint[1].
- EBIT margin guidance is unchanged at 17.5% to 18.5%[1].
- The recently signed mega deal is not expected to contribute revenue until Q1 of next fiscal year[1].
KPIs for the quarter
| Metric | Q4 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|
| Revenue growth, QoQ cc | n.d. | -0.5%[2] | +2.3%[1] |
| Revenue growth, YoY cc | n.d. | +2.6%[2] | +2.6%[1] |
| EBIT margin, reported | 16.5%[3] | 16.9%[2] | 18.2%[1] |
| EBIT margin, ex restructuring | 17.7%[3] | 17.5%[2] | 19.0%[1] |
| Net new bookings (TCV) | n.d. | US$2.4 bn[2] | US$3.3 bn[1] |
| Advanced AI revenue | US$155.1 mn[3] | US$171 mn[2] | US$219 mn[1] |
| Headcount, period end | 227,181[4] | 223,889[2] | 230,339[1] |
| LTM attrition | 12.5%[4] | 12.7%[2] | 12.8%[1] |
n.d. means not used here because the figure was not stated in the call text reviewed.
- Services grew 3.0% QoQ and 4% YoY, with organic Services growth of 2.3% QoQ. ER&D grew 4.1% QoQ. Software declined 5.8% QoQ[1].
- Bookings of US$3.3 bn were up 27% YoY, the second highest ever, and took first half bookings to a record[1].
- Restructuring cost was 84 bp in Q2 vs 62 bp in Q1[1][2]. Net income was US$538 mn, 14.4% of revenue[1].
- Advanced AI revenue rose 28.4% QoQ and 78% YoY. HCLSoftware ARR was US$1.134 bn, up 7.8% YoY[1].
Tone shift across three calls
| Call | What management emphasised |
|---|---|
| Q4 FY26 (Apr 2026) | Defensive. Q4 was hit by two US Telecom clients cutting discretionary spend and two discontinued SAP programs. FY27 guidance set wide at 1% to 4%, with the low end assuming a soft discretionary environment and Europe softness flagged[3]. |
| Q1 FY27 (Jul 2026) | Steadier. Guidance of 1% to 4% and 17.5% to 18.5% held on an organic basis. A seasonal QoQ dip offset by the highest ever Q1 bookings and a 39 bp margin gain[2]. |
| Q2 FY27 (Oct 2026) | More confident on execution, still careful on the macro. The band narrowed and lifted with acquisitions, margin rose 131 bp QoQ, and bookings rose 35% QoQ. Management still described the environment as volatile[1]. |
Sources
- HCL Technologies, Q2 FY27 earnings call transcript (call held 12 Oct 2026), filed with NSE on 15 Oct 2026
- HCL Technologies, Q1 FY27 earnings call transcript (call held 13 Jul 2026), filed with NSE on 15 Jul 2026
- HCL Technologies, Q4 FY26 earnings call transcript (call held 21 Apr 2026), filed with NSE on 24 Apr 2026
- HCL Technologies, Q2 FY27 Investor Release, 12 Oct 2026
Illustrative sample, not investment advice, based on public information as of 28 October 2026.