HCL Tech Q3 Results: Strong Fundamentals, Brokerages Cautious on Near-Term Outlook

• HCL Technologies' Q3 FY26 results show improved operational momentum and deal pipeline, strengthening confidence.
• Brokerages like Citi and HSBC acknowledge strong performance but maintain 'Neutral' or 'Hold' ratings due to valuation and seasonal risks.
• Key positives include a 43% YoY jump in deal TCV, improved margins, and an upgraded services revenue growth guidance for FY26.
• Caution persists due to historical seasonal weakness in Q4, particularly in the products business, and past stock return patterns.
• Nomura stands out with a 'Buy' rating, citing HCL Tech's asset-light, services-centric AI strategy as a strong positive differentiator.

Why It Matters: HCL Tech shows strong Q3 fundamentals and AI strategy, but brokerages remain cautious on near-term stock upside.