India's HCLTech wins $1.14 billion deal with European firm
HCLTech Secures Major European Contract: Key Details and Impact
BENGALURU, July 3 (Reuters) - India's HCLTech has won a $1.14 billion deal with a major European firm, the software services exporter said on Friday.
Market Reaction
The announcement pushed HCLTech's shares up by as much as 6.3%, boosting gains on the Nifty IT index, which was up 2.7%.
Deal Highlights
AI-Driven Transformation
• The deal will help HCLTech establish an AI-driven operating model to transform and manage the client's global digital workplace and enterprise networks, the company said.
Contract Duration and Terms
• The deal will last for five-and-a-half years and is extendable by another five years, it added, without providing further details about the European firm.
New Business Acquisition
• This is entirely new business for the company, HCLTech said, and not from an existing client or a deal renewal.
Comparison to Previous Deals
• This is the largest deal HCLTech has announced since winning a $2.1 billion deal with Verizon in August 2023.
Financial Outlook
Revenue Growth Forecast
• HCLTech, which will report its results for the first quarter of fiscal 2027 on July 13, has forecast revenue growth of 1%-4% for the year.
Reporting Credits
(Reporting by Haripriya Suresh in Bengaluru; Editing by Janane Venkatraman and Rashmi Aich)