Hexaware Technologies reported Q3 CY26 revenue of $411.9 million, a modest 1.6% sequential rise that missed internal targets. Under new CEO Vivek Jetley, the company has suspended its Q4 outlook to conduct a 90-day strategic review. While performance was bolstered by growth in Banking and TPP segments, headwinds from a GSE client and delayed deal closures weighed on results. The firm remains debt-free with $200 million in cash.
Hexaware Reports Q3 Revenue of $411.9 Million Amid Strategic Review
Revenue grew 1.6% sequentially to $411.9 million, while adjusted EBIT margins reached 13.8%.
Reader Takeaway: Strong Banking sector growth offsets GSE client headwinds; management pause on guidance signals upcoming structural shifts.
What just happened
Hexaware Technologies released its Q3 CY26 results, reporting revenue of $411.9 million, reflecting 4.3% year-over-year growth. Adjusted PAT stood at 9.4%, with EPS rising 30.7% sequentially. The company announced a restructuring of its Netherlands operations, incurring a $6 million one-time cost, which is expected to yield a 40 bps margin improvement annually.
Why this matters
Under new CEO Vivek Jetley, the company is shifting its focus to an AI-centric growth model. However, the surprise suspension of Q4 outlook guidance reflects uncertainty regarding deal closure timelines and seasonal weakness. Investors are currently awaiting the results of a 90-day comprehensive strategic review that aims to optimize delivery and sales realization.
Segment Performance
The Banking sector was a standout, growing 6.6% sequentially. Conversely, the Travel and Transportation segment declined by 3.5% due to regional conflicts in the Middle East. Healthcare and Insurance saw a marginal 40 bps decline despite 6.3% year-over-year growth.
Risks to watch
Management highlighted that revenue growth fell below internal expectations due to softness at a major Government-Sponsored Enterprise (GSE) client and slower large deal conversions. These factors, combined with seasonal Q4 trends, contribute to the current caution regarding short-term performance visibility.
What to track next
Watch for the completion of the 90-day strategic review and the company's ability to convert its current pipeline into realized revenue. Additionally, the expanded partnership with Anthropic will be a key metric for the company's AI-led growth strategy, with 1,200 employees already certified to leverage the platform.