HCLTech CEO Expects Advanced AI Services To Offset Revenue Deflation

Despite pricing pressures and client-specific challenges, HCLTech ended FY26 with 3.9% revenue growth in constant currency. The CEO emphasized that while automation is reducing deal sizes, advanced AI services are gaining traction and will play a pivotal role in sustaining momentum.  

AI Deflation Impact  

AI adoption is compressing deal values across traditional IT services. Contracts that once fetched $100 million are now closer to $80 million, reflecting productivity gains from automation rather than declining demand.  

Advanced AI Services As Growth Driver  

HCLTech’s advanced AI portfolio includes AI factories, semiconductor design for inferencing, AI-led marketing, and platform-based solutions. These offerings generated $620 million in annualized revenue in FY26, growing 6–7% sequentially.  

Market Guidance  

For FY27, HCLTech has guided revenue growth of 1–4% in constant currency, with services growth expected between 1.5–4.5%. EBIT margins are projected at 17.5–18.5%.  

Industry Outlook  

Analysts note that while AI-driven efficiencies may reduce pricing power, they also open new opportunities in data, cloud, cybersecurity, and AI-native solutions. HCLTech’s strategy reflects a broader industry shift toward embedding AI across service delivery models.  

Key Highlights  

• HCLTech FY26 revenue grew 3.9% in constant currency  
• AI efficiencies causing 2–3% annual deflation in deal values  
• Advanced AI services contributed $620 million in FY26  
• Company guided FY27 growth at 1–4% in constant currency  
• Focus on AI factories, semiconductor design, and AI-led marketing  

Sources: Moneycontrol, Outlook Business, People Matters, NetIndia123