HCL Technologies Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Shareholders might have noticed that HCL Technologies Limited (NSE:HCLTECH) filed its quarterly result this time last week. The early response was not positive, with shares down 6.6% to ₹1,563 in the past week. Revenues of US$3.5b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$0.17, missing estimates by 9.2%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following the latest results, HCL Technologies' 44 analysts are now forecasting revenues of US$14.6b in 2026. This would be a modest 4.0% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be US$0.75, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$14.5b and earnings per share (EPS) of US$0.79 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Check out our latest analysis for HCL Technologies

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹1,695, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic HCL Technologies analyst has a price target of ₹2,000 per share, while the most pessimistic values it at ₹1,389. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that HCL Technologies' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.4% growth on an annualised basis. This is compared to a historical growth rate of 7.5% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.5% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than HCL Technologies.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹1,695, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple HCL Technologies analysts - going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with HCL Technologies .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.