HCLTech CEO Sees Tech-Driven Growth Amid Tariff Headwinds

The global economy is navigating a storm of trade tensions, and HCLTech’s CEO C Vijayakumar is positioning the company to capitalize on the shifting landscape. In recent earnings calls, he outlined a nuanced view of the challenges posed by tariffs while emphasizing opportunities in emerging technologies. Here’s what investors need to know.

The Tariff Threat: Short-Term Uncertainty, Long-Term Risk

Vijayakumar acknowledged that U.S. reciprocal tariffs have yet to directly hit HCLTech’s bottom line as of April 2025. However, he warned of broader macroeconomic risks. “No vertical would be left behind” if trade policies escalate, he said, pointing to retail and manufacturing as initial hotspots. This cautious outlook reflects the ripple effects of protectionism on global supply chains.

The CEO’s realism is backed by sector-specific pressures. Export-heavy industries face margin squeezes, while clients delay discretionary spending. This aligns with broader economic indicators: a would show how reliance on certain industries could amplify volatility.

The Opportunity Play: AI and Cost Optimization

But Vijayakumar’s optimism hinges on tech-driven solutions. He highlighted generative AI and cost-focused tech adoption as “large opportunities” for HCLTech. Clients, he noted, are increasingly using these tools to cut operational expenses—a critical strategy in a tariff-sensitive environment.

The telecom and media vertical exemplifies this trend. It grew 24.3% in Q4 FY2025, outpacing other sectors. This isn’t a fluke: could reveal its competitive edge. The CEO’s focus on integrating AI into client workflows suggests HCLTech is ahead of the curve in this transition.

Financial Outlook: A Conservative Growth Bet

HCLTech’s FY2026 revenue growth forecast of 2–5% is modest in a high-growth industry context. Yet Vijayakumar framed it as “the most robust among peers,” signaling confidence in outperforming rivals in a cautious market. This projection assumes clients will prioritize cost efficiency over discretionary spending—a bet that hinges on the durability of AI’s cost-saving potential.

Conclusion: Navigating the Tariff Crossroads

HCLTech’s strategy is a masterclass in balancing risk and opportunity. The company’s telecom/media success (24.3% Q4 growth) and AI focus provide tangible proof points for its narrative. While tariffs pose near-term challenges, the CEO’s emphasis on innovation aligns with a broader tech industry trend: using automation to offset external pressures.

Investors should watch two key metrics: and . If HCLTech can sustain its AI-driven growth while peers stumble in a tariff-driven slowdown, its FY2026 forecast could prove conservative—and its stock a winner in a turbulent market.

In a world of trade uncertainty, HCLTech isn’t just surviving—it’s betting on technology to thrive. The question now is whether clients will follow its lead.