Hexaware CY25 revenue rises 7.6% on AI wins, acquisitions

CY25 snapshot: growth in a difficult IT spending cycle

Hexaware reported CY25 revenue of USD 1,537.4 million, with reported growth of 7.6% year-on-year. In constant currency terms, the company said revenue grew 7.1% year-on-year, indicating the bulk of the growth was operational rather than currency-led. Management described CY 2025 as a challenging year for the broader IT services industry, but said the company saw an acceleration in deal wins in the later part of the year. The update also underlined a sharper focus on AI-led services and speed-to-market for new offerings.

In a separate quarterly data point highlighted in the same context, the company said Q4 revenue was USD 389 million, alongside EBITDA margin expansion of 65 basis points year-on-year. While the company did not provide detailed segment financials in the provided information, it flagged that strategic execution and deal momentum improved into the second half.

What management said about strategy and execution

CEO R. Srikrishna framed the company’s near-term playbook around speed, agility, and productizing AI capabilities. He said Hexaware is challenging itself to launch a new AI-enabled service every month and to take each new service to its most important customers within 90 days of launch. He also reiterated that even though CY 2025 was challenging for the industry, deal wins accelerated in the later part of the year, which the company believes positions it better for CY 2026.

CFO Vikash Jain said the company navigated the macro environment with disciplined execution, resulting in healthy margin expansion on a year-on-year basis. He also highlighted working capital discipline, with cash flow conversion of 75%+, and noted that the company closed two capability-led acquisitions during the year. The leadership commentary positioned cash discipline, margin resilience, and capability building as key themes.

Deal momentum: key wins across verticals

Hexaware listed multiple large wins that indicate a focus on consolidation, modernization, and platform-led transformation. These wins span technology, banking and development finance, insurance, healthcare research, and consumer-facing enterprises.

Key wins cited by the company included:

• A large consolidation deal with a global technology giant.
• An application development and cloud modernization engagement with one of the world’s largest development banks.
• Selection by a major North American pet insurance holding company for full stack services.
• A partnership with a leading global multiline insurer to support enterprise-wide technology modernization.
• A deal to build agentic AI for many steps in clinical research with a global Clinical Research Organization (CRO).
• An application development, digital ITO and M&A playbook deal with the world’s largest casual dining company.
• An opportunity to scale a GCC with a leading technology services firm based in Asia.

AI-led launches: Q4 additions and monthly cadence goal

The company said strategic progress in 2025 focused on AI-led modernization and acquisitions. It added that it launched three new AI offerings in Q4 and plans to introduce a new AI-enabled service every month. The operating intent, as described by the CEO, is to shorten the time from launch to customer adoption to 90 days for its most important clients.

Hexaware also highlighted the creation of a new vertical, Technology Products and Platforms (TPP), as part of its segment-level strategic development during the year.

Acquisitions: capability expansion in 2025

Hexaware said it executed 100% ownership acquisitions to strengthen capabilities. The deals mentioned were:

• SMC Squared LLC in July 2025
• CyberSolve (Identity and Access Solutions LLC) in November 2025

Management described these as capability-led acquisitions, aligning them with the company’s stated focus on differentiated platforms and services.

Demand and sector notes: manufacturing recovery signals

The management commentary included a specific observation about manufacturing. The company said the manufacturing vertical posted growth year-on-year and sequentially, indicating signs of recovery as clients adjust to US tariffs. CEO R. Srikrishna noted that while tariffs remain, clients have more clarity on where they are applied and can plan supply chains accordingly.

Separately, the company described broader industry demand as cautious, but said decision-making is improving. In terms of expected growth drivers, management pointed to Banking and Healthcare & Insurance as areas expected to lead growth in the coming year.

CY26 outlook: growth expectation and margin band

For CY26, Hexaware said it expects reported revenue growth to exceed the 7.6% achieved in CY25. It also set a CY26 EBIT margin outlook of 13.0% to 14.0%. The guidance, along with commentary on improving decisions and stronger deal momentum in the second half, frames CY26 as a year where execution and conversion of the order book will be closely tracked.

Key numbers at a glance

Why the update matters for investors

The CY25 update combines three investor-relevant signals: a steady revenue growth rate in a difficult environment, management emphasis on AI-led service launches with a defined cadence, and a stated margin band for CY26. The list of key wins shows demand for consolidation, cloud modernization, and AI use cases such as agentic AI in clinical research workflows.

At the same time, the company’s commentary on cash conversion and working capital discipline highlights a focus on execution quality, not only topline growth. The acquisitions and the launch of the TPP vertical also indicate that Hexaware is investing in capability expansion while trying to shorten the time between product launch and customer adoption.

Conclusion

Hexaware closed CY25 with revenue of USD 1,537.4 million and 7.6% year-on-year growth, alongside a strategy centered on rapid AI-enabled service launches and capability additions through acquisitions. For CY26, investors will watch whether the company can deliver revenue growth above CY25 levels while staying within its 13.0% to 14.0% EBIT margin outlook, as decision-making conditions improve and Banking plus Healthcare & Insurance remain focus sectors.