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HCLTech lowers margin forecast

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HCLTech has revised its FY26 revenue growth forecast upwards, now projecting 3-5% in constant currency, driven by improved demand. However, the company lowered its margin guidance to 17-18% due to unexpected Q1 impacts, AI investments, and restructuring costs. CEO C Vijayakumar noted that Q1 services revenue was affected by ramp downs and a client bankruptcy, despite ongoing GenAI investments.
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