HCL Technologies Limited (NSE:HCLTECH) Just Released Its Second-Quarter Earnings: Here's What Analysts Think

Investors in HCL Technologies Limited (NSE:HCLTECH) had a good week, as its shares rose 2.9% to close at ₹1,496 following the release of its second-quarter results. It was a credible result overall, with revenues of US$3.6b and statutory earnings per share of US$0.18 both in line with analyst estimates, showing that HCL Technologies is executing in line with expectations. 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 an okay 2.4% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$0.73, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$14.4b and earnings per share (EPS) of US$0.73 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for HCL Technologies

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹1,642. 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. There are some variant perceptions on HCL Technologies, with the most bullish analyst valuing it at ₹1,980 and the most bearish at ₹1,381 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 would highlight that HCL Technologies' revenue growth is expected to slow, with the forecast 4.8% annualised growth rate until the end of 2026 being well below the historical 7.3% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.4% annually. Factoring in the forecast slowdown in growth, it seems obvious that HCL Technologies is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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 ₹1,642, 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 forecasts for HCL Technologies going out to 2028, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for HCL Technologies that you need to take into consideration.

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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.