Earnings call transcript: Hexaware Q3 2026 revenue growth slows as AI push builds

Hexaware Technologies reported a Q3 2026 revenue of $411.9 million, representing a 1.6% increase from the prior quarter and a 4.3% increase from the previous year. However, the revenue fell short of expectations, with softness at one global capability center client and slower progress on large deals cited as the reasons. The company's adjusted EBIT margin improved to 13.8%, driven by calendar effects and foreign exchange, while reported EBIT margin stood at 12.2%.

Management narrowed the full-year 2026 EBIT margin guidance to 13% to 13.5%, and Hexaware's shares were unchanged at $0.775, near the middle of its 52-week range. Despite the revenue miss, profitability remained strong, and the company ended the quarter with $200 million in cash and investments. Management highlighted the success of the AI strategy through their "Zero Friction Enterprise" platform and partnership with Anthropic, as well as the favorable outcome of 12 out of 13 vendor consolidation exercises.

The company expects some delayed deals to close in Q4 or Q1 and is conducting a broader strategic review.