Times of India | HCLTech shares drop 11% as weak outlook offsets AI gains

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Shares of HCLTech fell nearly 11% on the BSE after the company gave a softer‑than‑expected outlook following a muted March quarter, where constant‑currency revenue slipped 3.3% sequentially (down 2.9% in dollars) but rose 2.4% year‑on‑year to $3.6 billion. CEO C Vijayakumar said the firm has offset most of the 2–3% AI‑driven deflation in its traditional services business through new offerings, and targeting FY27 services revenue growth of 1.5‑4.5% (mid‑point about 3%). FY26 saw overall growth of 4.8% (3.8% organic) and a $14.6 billion revenue figure, with tariff volatility and weak discretionary spend noted as headwinds. HCLTech is expanding its “advanced AI” services, now at a $620 million annualised run‑rate, and continues to focus on cloud, cybersecurity and data modernisation, while recent layoffs in Orlando were described as a routine client‑specific adjustment. The current guidance does not yet factor in a pending acquisition of a telecom unit from Hewlett Packard Enterprise, pending regulatory approval, and the company stresses that IT‑services firms remain crucial for enterprise AI adoption despite competition from AI‑native firms.

Read more: https://timesofindia.indiatimes.com/business/india-business/hcltech-shares-plunge-11-amid-weak-outlook-despite-ai-growth/articleshow/130456806.cms

#HCLTech #C.Vijayakumar #AI #ITServices #FinancialServices

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