HCLTech AI Revenue Jumps 46% to $146M, CEO Eyes Future Readiness
Overview
HCL Technologies reported a significant 46% sequential growth in its advanced AI business, reaching $146 million in the third quarter. CEO C. Vijayakumar affirmed the company's commitment to transparency by continuing to report AI-driven revenue, providing stakeholders insight into its future-ready strategy and the integration of generative AI across services and products.
AI Revenue Surge Drives HCLTech Growth
HCL Technologies has reported a substantial 46% sequential increase in revenue from advanced AI technologies, reaching $146 million for its third quarter. This figure follows a previous report of $100 million in AI-related revenue for the July-September 2025 quarter, marking significant momentum for the homegrown IT services giant. The company remains committed to quantifying its progress in this disruptive technology.
Transparency in AI Reporting
CEO C. Vijayakumar emphasized the company's strategy to continue disclosing its generative AI revenue. He stated that this transparency offers stakeholders a clear view of how HCLTech is adapting and becoming future-ready. The focus includes AI Factory, proprietary IP, agentic work, and conversational AI, distinguishing these new areas from the mandatory integration of AI into existing services.
AI's Impact on Deal Renewals
Vijayakumar highlighted how HCLTech has proactively adopted generative AI, even passing on some savings to clients during deal renewals. This approach, implemented over the last four to five quarters, has not only led to productivity gains but has also motivated clients to expand their business with the company, fostering deeper wallet share.
Product Business Dynamics
While IT services are outpacing the software products segment, HCLTech's data portfolio is experiencing strong growth, benefiting from generative AI and strategic acquisitions. The product business is navigating a transition from perpetual to subscription-based licenses. Though this causes some fluctuations, the company aims for low single-digit growth in products, prioritizing the expansion of recurring subscription revenue. Generative AI is seen as a key enabler for modernizing and cloud-enabling these product offerings.
The Future of AI Agents
Addressing the deployment of AI agents in software engineering, Vijayakumar described a transformation from people-based models to hybrid 'human-in-the-loop' constructs. He noted that while agentic models show promise, their effectiveness hinges on foundational prerequisites like underlying data quality and process simplification. Significant work is underway within large enterprises to establish these building blocks for broader AI agent adoption.
