HCLTech Partners with Pearson, Q1 Revenue Growth Seen Between 3-5% Y/Y in CC

HCLTech has partnered with Pearson, narrowed its revenue forecast, and reported Q1 net profit of 38.43 billion rupees. The Indian IT firm's quarterly results topped estimates, with some strong client spending. HCLTech's FY26 revenue growth is seen between 3-5% YoY in constant currency. The company's stock has been affected by lower annual operating margin forecasts and a downgrade from Jefferies.

HCLTech, a global technology company, has announced a strategic partnership with Pearson to accelerate skills development and workforce readiness in an AI-driven world. The collaboration aims to leverage Pearson's expertise in learning and assessment and HCLTech's strengths in digital transformation and AI [1]. The partnership involves co-developing AI-powered products and services to close skills gaps and empower individuals to advance their careers.

In its Q1 FY26 financial results, HCLTech reported a revenue growth of 8.1% year-on-year, reaching Rs 30,349 crore. The company's net profit for the quarter was Rs 3,843 crore, down by 9.7% compared to the previous year, primarily due to higher costs and a one-time hit from a client bankruptcy [2]. Despite the profit decline, the company's revenue growth outpaced industry peers, with some strong client spending contributing to the results.

HCLTech has narrowed its FY26 revenue forecast to a range of 3-5% year-on-year in constant currency, reflecting a more cautious outlook amid global economic uncertainties. The company's stock has been affected by lower annual operating margin forecasts and a downgrade from Jefferies, which cited concerns about the company's cost structure and competitive positioning [2].

The partnership with Pearson and the Q1 results highlight HCLTech's commitment to innovation and digital transformation, positioning the company to capitalize on emerging opportunities in AI and other technologies. As the global economy stabilizes, analysts remain optimistic about the long-term prospects for HCLTech and the broader IT services sector, driven by high tech debt across global enterprises.

References:
[1] https://www.prnewswire.com/news-releases/hcltech-and-pearson-partner-to-accelerate-skills-development-advance-careers-and-bridge-the-global-skills-gap-in-the-ai-era-302515989.html
[2] https://timesofindia.indiatimes.com/business/india-business/q1-earnings-wrap-indias-top-it-firms-report-single-digit-growth-clients-cautious-amid-weak-macros-ai-drives-selective-uptick/articleshow/122935607.cms