Wipro Beats Q3 Revenue Estimates on Americas Communications, Health and Consumer Growth
Wipro’s third-quarter revenue surpassed analyst forecasts, driven by strength in its Americas communications, health and consumer segments. Growth in these verticals underpinned its IT services performance, highlighting resilient demand in its largest market and improving visibility for its fiscal 2026 revenue outlook.
1. Robust Quarterly Financial Performance
Wipro delivered gross revenue of Rs 235.6 billion for the quarter ended December 31, 2025, marking a 3.8% sequential increase and 5.5% year-on-year rise. IT services revenue stood at $2,635.4 million, up 1.2% sequentially and 0.2% year-on-year, while constant-currency IT services revenue rose 1.4% sequentially despite a 1.2% decline versus the prior year. The company reported net income of Rs 31.2 billion, down 3.9% quarter-on-quarter and 7.0% year-on-year, with earnings per share of Rs 2.98. Adjusting for labour code changes, net income would have been Rs 33.6 billion, up 3.6% sequentially, and EPS would have been Rs 3.21. Operating margins expanded by 0.9 percentage point sequentially to 17.6%, the highest in several years, and operating cash flow surged 25.7% sequentially to Rs 42.6 billion, representing 135.4% of net income. Voluntary attrition remained elevated at 14.2% on a trailing twelve-month basis.
2. Significant Strategic Deal Wins Across Verticals
During the quarter, Wipro secured a number of large, multi-year engagements. Highlights include a renewal with a global technology leader to support trust and safety operations using AI/ML models; an expanded partnership with a US national health insurer leveraging Wipro’s PayerAI platform for member enrollment; and a multi-year transformation program for a North American furnishings manufacturer to modernize enterprise applications with AI accelerators. Additional wins span facilities management in the UK, global digital workplace modernization for a European food and beverage firm, hybrid cloud transformation for a major European insurer, core banking modernization for one of India’s top banks, and customer-experience enhancements for a Southeast Asian airline.
3. Forward Outlook and Guidance
For the quarter ending March 31, 2026, Wipro expects IT services revenue to range between $2,635 million and $2,688 million, implying sequential growth of 0% to 2.0% in constant-currency terms. This guidance is based on exchange rates of GBP/USD at 1.33, EUR/USD at 1.17, AUD/USD at 0.65, USD/INR at 88.85 and CAD/USD at 0.72. Management emphasized continued investment in AI-powered platforms, rigorous execution discipline and focus on margin expansion, while the Board has declared an interim dividend of Rs 6 per share, taking total annual payout to $1.3 billion.