HCL Technologies Ltd reported record first-quarter bookings for its 2027 fiscal year, signaling strong demand despite a slight sequential dip in total revenue. The company secured $2.4 billion in net new total contract value bookings, which stands as the highest figure for any first quarter in the firm's history.
This total excludes a major agreement signed in early July that is expected to begin transitioning in the coming months.
Total revenue for the quarter reached $3.65 billion, reflecting a 2.6% increase compared to the same period last year. However, this figure represented a 0.5% decline from the previous quarter. The services division, which accounts for the bulk of the business, saw revenue drop by 0.7% sequentially.
The engineering and R&D services segment experienced a 3.7% sequential decline, a trend the company attributed to challenges within the telecom and high-tech sectors.
Financial performance metrics showed mixed results across different business units. Net income stood at $488 million, representing 13.4% of total revenue. Operating margins improved to 16.9%, an increase of 39 basis points from the prior quarter. The HCL Software division reported $33 million in revenue, marking a 5.3% year-over-year decline, although annual recurring revenue for the software unit grew by 2% year-over-year to $1.063 billion.
The company highlighted significant growth in its advanced artificial intelligence offerings, with AI-related revenue rising 62.1% year-over-year. This growth contributed to a 3.3% year-over-year increase in revenue per employee, marking consistent productivity gains over the last five quarters. The firm also completed the acquisition of JasperSoft, aiming to strengthen its data management capabilities with a new visualization layer.
On the balance sheet, HCL Technologies maintained a strong liquidity position with $2.86 billion in gross cash and $2.84 billion in net cash as of June 30, 2026. Free cash flow over the last twelve months totaled $1.98 billion. The company announced an interim dividend of INR12 per share for the quarter.
