HCL Technologies Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Investors in HCL Technologies Limited (NSE:HCLTECH) had a good week, as its shares rose 7.5% to close at ₹1,541 following the release of its third-quarter results. The result was positive overall - although revenues of US$3.4b were in line with what the analysts predicted, HCL Technologies surprised by delivering a statutory profit of US$0.19 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for HCL Technologies

After the latest results, the 37 analysts covering HCL Technologies are now predicting revenues of US$14.5b in 2025. If met, this would reflect a decent 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 13% to US$0.79. Before this earnings report, the analysts had been forecasting revenues of US$14.5b and earnings per share (EPS) of US$0.79 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.4% to ₹1,515. It looks as though they previously had some doubts over whether the business would live up to their expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on HCL Technologies, with the most bullish analyst valuing it at ₹1,770 and the most bearish at ₹1,130 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await HCL Technologies shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of HCL Technologies'historical trends, as the 8.9% annualised revenue growth to the end of 2025 is roughly in line with the 8.7% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 8.4% per year. So although HCL Technologies is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on HCL Technologies. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for HCL Technologies going out to 2026, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 2 warning signs for HCL Technologies that you need to be mindful of.

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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.