Times of India | HCLTech Q4: Revenue dips 3.3% QoQ, flags AI deflation
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HCLTech’s Q4 earnings showed a mixed picture, with March‑quarter revenue falling 3.3% sequentially (down 2.9% in dollar terms) but rising 2.4% year‑on‑year to $3.6 billion; for FY26 the company reported a 3.9% constant‑currency revenue increase, reaching $14.6 billion (up 6% in dollars). CEO C. Vijayakumar attributed the quarter’s softness to client‑specific headwinds, delayed procurement and volatile markets, while noting persistent tariff‑related volatility and weakened discretionary spending. The firm highlighted a structural shift it calls “AI‑led deflation,” estimating a 2–3% annual revenue impact as automation shrinks traditional deal sizes. To counter this, HCLTech is scaling its “advanced AI” portfolio, now generating an annualised run‑rate of $620 million, and expects AI‑native services to grow 25–30% in the near term.
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