HCL Technologies lands $1.14B AI contract while shares under pressure
HCL Technologies just landed a massive $1.14 billion contract with a top European company to roll out an AI-powered digital workplace and network.
The deal runs from July 2026 to December 2031, with an option for five more years, showing HCLTech is doubling down on AI-led services.
But even with this big win, the company's shares are feeling the heat due to worries about profits and a recent analyst downgrade.
ICICI Securities downgrades HCLTech to Reduce
ICICI Securities cut its rating on HCLTech from "Hold" to "Reduce," dropping the price target from ₹1,370 to ₹910.
They expect revenue to dip slightly this quarter as clients tighten spending, plus EBIT margins are likely to shrink thanks to employee restructuring costs and ongoing investments in AI.
The impact of recent acquisitions hasn't shown up in the numbers yet either.