Hexaware Technologies saw its shares fall approximately 8% after the company reduced its full-year revenue growth guidance for calendar year 2026 (CY26) following its first-quarter results.

The IT services firm trimmed its CY26 revenue growth outlook to a range of 6–7%, down from its earlier projection of at least 7.6%. The company attributed the downward revision to delays in deal ramp-ups and a softer macroeconomic environment.

Despite cutting its revenue growth guidance, Hexaware reaffirmed its EBIT margin guidance of 13–14% for CY26, signaling confidence in its cost management and operational efficiency targets. The decision to hold the profitability range while lowering the top-line outlook reflects a pattern seen across Indian IT services firms navigating uncertain client budgets, where companies have focused on protecting margins through utilization improvements and cost optimization.

Hexaware Technologies, headquartered in Navi Mumbai, India, provides digital and IT services across multiple global markets. The company was delisted from Indian stock exchanges in 2014 after Carlyle Group took it private, and returned to public markets through an initial public offering (IPO) in February 2025, making this one of its first major guidance updates as a newly listed entity.

The guidance cut and the resulting share price reaction come amid a broader period of caution in the global IT services sector, where companies have faced variable client spending patterns and macroeconomic headwinds. Deal ramp-up delays, in particular, have been a recurring theme across the industry as clients take longer to finalize discretionary technology spending.

Source: CNBC-TV18